The FTSE EPRA Nareit Developed Index posted a total return of 1.3% through the first quarter of 2026, while the FTSE EPRA Nareit Developed Extended Index returned 0.9% for the same period. After a strong start to the year, global real estate momentum reversed in March, along with broad markets, as volatility related to rising energy prices amid conflict in the Middle East weighed on returns.
Through Feb. 27, the Developed Index returned 11.1%, while the Developed Extended Index was up 10.8%. From Feb. 28 to April 7, both Developed and Developed Extended declined 6.9%. As of Feb. 27, the FTSE Global All Cap was up 4.5% before declining 7.3% in March and through April 7 has posted a year-to-date total return of -1.2%.
Regional performance through March was led by North America, which delivered a year-to-date total return of 4.7%. In contrast, Developed Asia and Developed Europe both moved into negative territory for the year, posting year-to-date returns of -3.9% and -6.2%, respectively. These results reflect a sharp reversal in international markets during March, with Developed Asia declining 13.5% and Developed Europe falling 15.9% on the month. North America proved more resilient with a 5.8% monthly decline.
Property Sector Highlights
As reflected in the chart above, at the global level the data center sector continues to set the bar in 2026, delivering a year-to-date total return of 21.8%, followed by specialty with a total return of 6.6% and health care rising 4.7%. Conversely, the office sector continues to face the most significant headwinds, ending March down 11.4% year-to-date. The industrial/office mixed and residential sectors also struggled, posting returns of -8.4% and -7.3%, respectively.
Regional Performance
The above table reflects the ongoing concentration in Developed Asia and Developed Europe, where the Diversified sector remains the dominant property type, accounting for 68% of Developed Asia and 34% of Developed Europe. North America continues to present a more balanced landscape across multiple property sectors.
North America
As reflected in the exhibit above, North America led among developed regions in the first quarter with a 4.7% total return. Technology-centric real estate continued to provide a significant cushion against broader market weakness; the data center sector climbed 23.8% year-to-date, while specialty and industrial/office mixed returned 7.0% and 11.2%, respectively. The retail sector also showed strength with a 6.3% gain. However, the region’s performance was negatively impacted by the office sector, which has declined 16.8% so far this year, and the residential sector, which is down 6.2%.
Developed Asia
Developed Asia’s year-to-date return fell to -3.9% following a difficult March. Self-storage is the only sector in the region with a positive year-to-date return, climbing 2.6%. The region saw the outsized diversified sector return -2.3% through the first quarter. Most property types in Asia are now in negative territory for the year, including retail declining 9.7% and industrial falling 9.1%.
Developed Europe
Developed Europe was the hardest hit region in March, with its year-to-date total return dropping to -6.2%. While health care had been a notable positive performer in previous months, it ended the quarter essentially flat, down 1.2%. Other major sectors saw significant pullbacks, with self-storage and lodging/resorts declining 16.4% and 14.1% year-to-date, respectively. The residential sector, which carries a 17% weight in the region, also struggled, returning -12.5% through the end of March.