The FTSE EPRA Nareit Developed Extended Index fell 5.9% in September and has posted a total return of 2.4% in 2026. Year-to-date, North America continues to lead with a total return of 10.2%, while Developed Asia and Developed Europe trail with total returns of -7.1% and -8.6%, respectively. September was a difficult month across regions and property sectors. Developed Asia led at the regional level in September, though declined 4.1%; North America followed with a loss of 5.3%, and Developed Europe suffered the most, falling 9.1%.
Broader global equities have outperformed real estate since late July, as the FTSE Global All Cap has returned 13.0% for the year while falling 1.4% in September. The headwinds of rising bond yields and tightening monetary policy have presented greater headwinds for real estate over the past two months. Benchmark yields have pushed sharply higher throughout the late summer and into September as the 10-year U.S. Treasury yield climbed from under 4.60% in late July to reach 5.27% at the end of September.
As reflected in the chart above, the data centers sector leads global real estate performance in 2026, delivering a year-to-date total return of 25.6%, followed by lodging/resorts at 25.1%, and health care at 17.3%. Timberland, industrial/office mixed, and telecommunications have lagged in 2026, posting respective year-to-date returns of -15.9%, -10.6%, and -10.6%.
The preceding chart reflects the impact of geopolitical instability in the Middle East and the steady rise of the 10-year U.S. Treasury yield in 2026. Global real estate’s late summer swoon also came as investors began pricing in expectations of tightening monetary policy through the end of the year.
Regional Breakdown
North America
The table above reflects North America’s continued outperformance on a year-to-date basis with a total return of 10.2%. Lodging/resorts leads with a total return of 37.5%, followed by data centers gaining 28.0%, and health care returning 18.4%. Four North American property sectors have generated negative returns year-to-date, with timberland falling 15.9%, telecommunications losing 10.6%, residential down 4.0%, and specialty losing 3.4%.
Developed Europe
Developed Europe has posted a year-to-date total return of -8.6%. Industrial remains the lone property sector in positive territory with a gain of 6.2%. The region has been weighed down by sharp declines in lodging/resorts, residential, and self-storage with respective declines of -26.0%, -22.7%, and -21.6%.
Developed Asia
Developed Asia has posted a total return of -7.1% in 2026, with negative returns across all property sectors. Health care, lodging/resorts, and data centers are the best performing sectors in the region with losses of 1.1%, 3.4%, and 5.0%, respectively. Data centers suffered a particularly tough September, declining 15.6%. On a year-to-date basis, specialty leads to the downside, with a total return of -27.6%, followed by self-storage at -16.6%, and residential at -13.4%.