Current Status of the Global Real Estate Market: Overview of Key Trends

According to a report by UBS, the global real estate market has risen by 10.4% from 2025 to date, lagging behind the broader stock market performance by 4.6%, with significant regional disparities. The Asian market leads globally, driven by strong growth in Japan and Australia, while Europe and Hong Kong have underperformed due to weakness in the office sector and financing pressures. UBS stated that the sector rose by 2.1% in August, slightly above the global stock market, benefiting from expectations of interest rate cuts and improved earnings momentum. In the United States, high beta sectors such as regional shopping centers and accommodations recorded double-digit growth, reflecting market optimism about potential interest rate cuts by the Federal Reserve. Brokerage firms such as Jones Lang LaSalle, Colliers International, and CBRE also rose due to strong earnings and a rebound in trading activity. Meanwhile, congestion data shows that data centers and infrastructure remain the most favored sub-sectors for real estate investment trusts, while the office sector continues to be heavily shorted. UBS added, "U.S. real estate investment trusts are currently reasonably valued relative to historical trends," with its valuation model indicating a slight increase in multiples before the end of the year. Asia is currently performing the best. Japan has surged significantly due to inflows of overseas capital, and UBS noted that major funds are targeting residential opportunities as rents are rising