Nareit’s annual update of the Global REIT Approach to Real Estate Investing study shows growth in REITs worldwide, with more than 1,000 traded REITs at the end of 2024 in 42 countries and regions. The study documents the global growth of REITs and the benefits, especially to developing nations, of enacting a REIT regime. Currently, countries and regions that have enacted REIT legislation represent 85% of global GDP and a combined population of 5 billion people.
The global growth of REITs over the past six-and-a-half decades is shown in the map above. REITs began in 1960 in the U.S., followed by the Netherlands, New Zealand, Taiwan, and Australia all adopting REITs before 1970. After adoption in Europe and Asia, Brazil became the first country to adopt REITs in South America in 1993, while Israel and the Emirate of Dubai in UAE were the first two countries to adopt in the Middle East in 2006. Finally, South Africa adopted REITs in 2013 as the first country in Africa. Mauritius is the most recent country to adopt REITs in 2023.
The growth in the number of REITs since 1990 by region is shown in the chart above. A total of 1,021 listed REITs with a combined equity market capitalization of approximately $2 trillion at the end of 2024 are in operation around the world. Europe and Asia have seen the largest growth in REITs since 2020, with Europe adding 77 REITs (39% growth) and Asia adding 73 REITs (36% growth). China is another driver of growth, only adopting REITs in 2021, yet with 58 listed REITs on the Beijing Stock Exchange at the end of 2024.
The study also shows that over the long term, global listed real estate, including REITs, has generally outperformed both global stocks and global bonds. The compound annual growth rate in returns from June 2009 to December 2024 is 9.2% for the FTSE EPRA Nareit Global Extended Index, compared with 6.9% for the broader global stock market (represented by MSCI EAFE), 6.4% for private real estate, and 1.3% for global bonds (Bloomberg Barclays Global-Aggregate bond index). The chart above shows the growth in returns. REITs have also had low correlation with other stocks and bonds, with FTSE EPRA Nareit Global REITs having a 0.82 correlation with MSCI EAFE.
For more information on the global growth and benefit of REITs, see the full study here.