The FTSE EPRA Nareit Developed Extended Index rose 3.6% in October and has posted a total return of 6.1% in 2026. Year-to-date, North America continues to lead with a total return of 13.7%, while Developed Asia and Developed Europe trail with total returns of -6.5% and -7.3%, respectively. October saw a broad rebound across all three regions: North America led with a gain of 3.2%, followed by Developed Europe at 1.5%, and Developed Asia at 0.6%.
Broader global equities have outperformed real estate year-to-date, as the FTSE Global All Cap has returned 11.2% for the year, though global real estate outpaced broader equities in October. After rising bond yields and expectations of tighter monetary policy weighed heavily on real estate in August and September, the pressure from rising bond yields eased in October. The 10-year U.S. Treasury yield climbed from under 4.60% in late July to 5.27% at the end of September and briefly hit a multi-decade high of 5.31% in early October before retreating to 4.91% at month-end.
As reflected in the chart above, the lodging/resorts sector leads global real estate performance in 2026 after climbing 10.9% in October, delivering a year-to-date total return of 38.7%, followed by data centers at 26.2%, and self-storage at 23.1%. Telecommunications also posted a standout October gain of 19.3%, lifting its year-to-date return to 6.7%. Timberland, industrial/office mixed, and residential have lagged in 2026, posting respective year-to-date returns of -10.5%, -9.7%, and -6.8%.
The preceding chart reflects the divergent impact by region from conflict in the Middle East and rising bond yields in 2026. After the 10-year U.S. Treasury yield reached a multi-decade high of 5.31% in early October, the subsequent pullback to 4.91% helped support a fourth-quarter recovery across global real estate markets.
Regional Breakdown
North America
North America is up 13.7% in 2026, led by lodging/resorts with a total return of 55.1%, followed by data centers at 30.5%, self-storage at 26.1%, and health care up 19.0%. Telecommunications and self-storage led the region in October with monthly gains of 19.3% and 14.8%, respectively. Three North American property sectors have generated negative returns year-to-date, with industrial/office mixed falling 11.6%, timberland losing 10.5%, and residential down 1.9%
Developed Europe
Developed Europe has posted a year-to-date total return of -7.3% after gaining 1.5% in October. Industrial remains the lone property sector in positive territory year-to-date, with a gain of 5.5%. The region has been weighed down by sharp year-to-date weakness in residential, lodging/resorts, and self-storage with respective declines of -24.5%, -20.3%, and -13.6%. Self-storage and lodging/resorts led in October with gains of 10.2% and 7.7%, respectively.
Developed Asia
Developed Asia has returned -6.5% in 2026, posting a narrow gain of 0.6% in October, with negative year-to-date returns across all property sectors. Health care and lodging/resorts lead, with each returning -2.8% in 2026, while retail is down 4.1%. Data centers suffered another steep monthly drop in October, declining 24.0%. On a year-to-date basis, the data center sector now leads to the downside with a total return of -27.8%, followed by residential at -18.2%, and self-storage at -16.1%. The specialty sector surged 18.3% in October to narrow its year-to-date decline to -14.4%