The FTSE EPRA Nareit Developed Plus Index fell 2.8% in August and has posted a year-to-date total return of 8.8%. North America continues to set the pace regionally with a year-to-date total return of 16.3%. In comparison, Developed Europe has recorded a modest gain of 0.5%, while Developed Asia lags with a total return of -3.1% for the year. Global equities have outperformed, as the FTSE Global All Cap has returned 14.6% for the year.
Heightened market volatility persisted as investors weighed shifting geopolitical tensions against intermittent periods of stability in the Middle East, where a durable resolution to the conflict remains elusive. Across major developed economies, benchmark yields have pushed higher in 2026, propelled by sticky inflation and ongoing geopolitical uncertainty stemming from the regional crisis.
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 31.6%, followed by lodging/resorts at 25.4%, and health care at 21.6%. Industrial/office mixed, telecommunications, and diversified have lagged in 2026, posting respective returns of -2.6%, -2.2%, and -1.5%.
The preceding chart reflects the impact of the conflict in the Middle East. While North American real estate has largely outperformed in 2026, August presented headwinds for real estate across all regions, while global equities managed to rebound.
Regional Breakdown
North America
As shown in the table above, North America continues to outperform regionally on a year-to-date basis with a total return of 16.3%. Performance within the region is led by lodging/resorts (+36.5%), data centers (+33.0%), and health care (+22.6%). Only one North American property sector has generated negative returns year-to-date, with telecommunications returning -2.2%.
Developed Europe
Developed Europe has posted a narrowly positive year-to-date total return of 0.5%, led by industrial gaining 15.2%, retail climbing 10.0%, and health care returning 5.5%.
Developed Asia
Developed Asia has lagged with a -3.1% total return in 2026. While data centers and health care have managed to post positive returns, gaining 12.5% and 1.8% respectively, the region has been weighed down by negative performance from all other sectors. Notably, specialty has declined 22.3%, self-storage has fallen 11.4%, and residential is down 9.9%.