PUBLISHER: Market Glass, Inc. (Formerly Global Industry Analysts, Inc.) | PRODUCT CODE: 1794680
PUBLISHER: Market Glass, Inc. (Formerly Global Industry Analysts, Inc.) | PRODUCT CODE: 1794680
Global Real Estate Investment Trusts (REIT) Market to Reach US$2.7 Trillion by 2030
The global market for Real Estate Investment Trusts (REIT) estimated at US$2.3 Trillion in the year 2024, is expected to reach US$2.7 Trillion by 2030, growing at a CAGR of 2.5% over the analysis period 2024-2030. Industrial Type, one of the segments analyzed in the report, is expected to record a 3.0% CAGR and reach US$1.8 Trillion by the end of the analysis period. Growth in the Commercial Type segment is estimated at 1.4% CAGR over the analysis period.
The U.S. Market is Estimated at US$638.2 Billion While China is Forecast to Grow at 4.7% CAGR
The Real Estate Investment Trusts (REIT) market in the U.S. is estimated at US$638.2 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$519.5 Billion by the year 2030 trailing a CAGR of 4.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.0% and 2.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.5% CAGR.
Global Real Estate Investment Trusts (REIT) Market - Key Trends & Drivers Summarized
Why Are Real Estate Investment Trusts Reshaping Institutional and Retail Investment Strategies?
Real Estate Investment Trusts (REITs) have become a cornerstone of diversified investment portfolios, offering exposure to income-generating real estate assets without the complexities of direct property ownership. Structured to allow investors to purchase shares in professionally managed property portfolios-ranging from office buildings and data centers to healthcare facilities and residential complexes-REITs provide stable cash flows through dividend distributions and capital appreciation. The appeal lies in liquidity, transparency, and regulatory oversight, making REITs an accessible and tax-efficient vehicle for both retail and institutional investors.
The REIT model has gained momentum globally as investors seek yield alternatives in a low-interest rate and inflation-sensitive environment. Publicly traded REITs offer daily liquidity similar to equities, while private and non-traded REITs cater to long-term investors with risk-adjusted yield expectations. Regulatory support in markets like the U.S., Singapore, Canada, Australia, and more recently India and parts of Europe, has strengthened the REIT ecosystem through legal clarity, listing frameworks, and tax incentives. As real estate evolves to include digital infrastructure, ESG-compliant buildings, and hybrid workspaces, REITs offer dynamic access to a broad spectrum of asset classes beyond traditional office and retail.
Which Property Sectors and Investor Types Are Driving REIT Market Activity?
The REIT market encompasses diverse property sectors, each aligned with macroeconomic trends, consumer behavior, and demographic shifts. While traditional REIT segments include office spaces, residential apartments, retail malls, and hospitality, the highest growth in recent years has been observed in specialized segments such as data centers, logistics and warehousing, self-storage, and healthcare real estate. The explosive growth of e-commerce has bolstered demand for last-mile delivery hubs and fulfillment centers, making logistics REITs particularly attractive. Similarly, aging populations and rising healthcare spending are fueling the expansion of healthcare REITs, which invest in hospitals, senior living communities, and medical office buildings.
From an investor standpoint, REITs are attracting a mix of institutional fund managers, pension funds, sovereign wealth entities, and retail investors. Institutional investors often use REITs for yield generation and real asset exposure within diversified portfolios. Retail investors, on the other hand, are accessing REITs through ETFs, mutual funds, and fractional share platforms. The emergence of real estate crowdfunding and digital brokerage platforms is also democratizing REIT access among younger and tech-savvy investors. Meanwhile, ESG-focused investors are gravitating toward green REITs that prioritize energy-efficient buildings, sustainability disclosures, and social impact investments.
How Are Technology, Regulation, and ESG Trends Shaping REIT Strategies?
Technology is playing a central role in REIT market evolution, from asset management and tenant engagement to investor reporting and ESG tracking. PropTech solutions such as IoT-based building monitoring, AI-driven occupancy analytics, and digital lease management are improving asset efficiency and tenant retention. REITs are increasingly investing in smart buildings that reduce energy consumption and enhance user experience, aligning with green building certifications and ESG frameworks. Cloud platforms and investor dashboards are also enhancing transparency and compliance, particularly for publicly traded REITs that face stringent disclosure requirements.
On the regulatory front, REIT regimes are being expanded and harmonized across jurisdictions, encouraging cross-border capital flows. In India, for instance, REITs are becoming a mainstream investment route with the success of commercial REIT listings, while in Europe, REIT frameworks are being fine-tuned to include logistics and life sciences assets. ESG criteria are becoming central to REIT investment mandates, with metrics on carbon footprint, governance transparency, and tenant satisfaction now forming part of investor evaluations. Green bonds and sustainability-linked loans are also being adopted by REITs to finance energy-efficient developments, strengthening their capital market positioning in the face of climate-aware capital allocation trends.
What Factors Are Driving the Growth of the Global REIT Market?
The growth in the global REIT market is driven by several key factors including investor demand for yield, real asset diversification, and the evolving nature of built infrastructure. As interest rates and inflationary pressures fluctuate, REITs provide a compelling hedge through rental income-linked returns and inflation-indexed leases. Global urbanization, digital infrastructure expansion, and demographic shifts are expanding the investable universe for REITs, particularly in emerging markets where formal REIT frameworks are gaining traction. Institutional capital is increasingly favoring listed and private REITs as a scalable vehicle for global real estate exposure with reduced operational overhead.
Retail participation is also surging, aided by digital trading platforms, financial literacy programs, and REIT integration into retirement and savings products. REITs’ consistent dividend payout structure aligns well with income-seeking investors, especially in aging societies. Regulatory liberalization, cross-border REIT listings, and capital market innovations are enhancing liquidity and investor confidence across the board. As real estate investment transitions toward platform models, digital integration, and ESG-led stewardship, REITs are expected to remain a preferred and adaptive conduit for real estate capital across global financial ecosystems.
SCOPE OF STUDY:
The report analyzes the Real Estate Investment Trusts (REIT) market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Type (Industrial Type, Commercial Type, Residential Type); Application (Warehouses & Communication Centers Application, Self-Storage Facilities & Data Centers Application, Other Applications)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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