Published on 2 Apr 2024 on Insider Monkey via Yahoo Finance
10 Best Real Estate ETFs To Buy Now
In this article, we discuss 10 best real estate ETFs to buy. If you want to skip our discussion on the real estate market, head over to 5 Best Real Estate ETFs To Buy Now.
Despite economic challenges worldwide, real estate industry leaders surveyed by PwC are hopeful for a potential uptick in investment activity, driven by further clarity on monetary policy in key regions like the United States, Europe, and the Asia Pacific. They anticipate stakeholders in property transactions to adjust to higher interest rates, facilitating agreement on pricing. While the real estate sector has faced a notable downturn, there is optimism about recovery, though it is more pronounced in 2025 than in 2024. The real estate industry has shifted its focus from short-term concerns to a longer-term outlook, with attention shifting towards "the three Ds" – demographics, digitalization, and decarbonization. This transition is reshaping real estate dynamics, with sustainability playing a central role. Factors like ESG performance and alignment with employee values are increasingly influential in companies' real estate decisions, with offices evolving to reflect sustainability goals. Changing occupier preferences and technological advancements are transformational forces within the corporate office sector, highlighting the importance of high-quality, sustainable spaces. Embracing innovation and delivering value beyond physical space are identified as key strategies to remain competitive in an evolving market.
According to Jones Lang LaSalle Incorporated (NYSE:JLL), the belief that interest rates have reached their peak could lead to an uptick in real estate transactions and stabilization of prices, although it may take time for available capital to be fully utilized. Opportunities for growth are present in specific sectors, geographic areas, distressed assets, and portfolio adjustments. Sectors like living spaces, driven by urbanization and demographic shifts, are expected to continue performing well. The trend towards regionalization and local manufacturing is anticipated to persist in 2024, driving demand for industrial and logistics properties. Retail is also showing signs of recovery, attracting investors as supply and demand dynamics evolve. Data centers are projected to experience significant growth, propelled by advancements in artificial intelligence and changing location preferences. In 2024, occupiers of real estate will focus on solidifying workplace policies and aligning portfolios with evolving work trends. Sustainability will remain a focal point, with rising demand for environmentally friendly buildings and workspaces.