Global Real Estate Up 10.4% in 2025, Asia Leads the Rally 🏘️🌏

[madmax]

Global property has gained 10.4% YTD, but still lags equities by 4.6%, UBS says. August alone added 2.1% thanks to rate cut expectations and improving earnings momentum.

Asia is the standout:

Japan surged on overseas inflows, with funds chasing rising rents in residential assets.

Australia upgraded to Overweight — its strongest setup since COVID, driven by falling rates, rental growth, and bottoming valuations.

Singapore REITs gained from discounted asset sales under the Japanese sponsor model.

China’s private REITs are a “game changer,” opening new channels for capital recycling.

UBS notes valuations remain ~10% below NAV, while global EPS growth for 2024–25 is projected at 7.3%.

[Nahid Hossen]

10% below NAV + 7% EPS growth = classic recovery setup. But can REITs really close the gap if equities keep outperforming?

[Rimon Khan]

Asia carrying the team — Japan inflows, Aussie rate cuts, China’s REIT reforms. Feels like the West is stuck in neutral.

[Abdul Khan]

Australia Overweight call is big. Last time UBS leaned that bullish post-COVID, the rally was real.