Why consider REITs now?
Property markets tend to move in cycles, and REIT performance is often closely tied to interest rates.
Right now, investors are watching how borrowing costs, inflation and economic growth are influencing property values and rental income.
Higher interest rates can increase financing costs for property companies, while lower rates may support valuations. REITs are a way to diversify portfolios as they offer exposure to real estate, which is viewed as a separate asset class.
This allows investors to invest in property in one click, without the hassle of investing in physical property.
At the same time, structural trends such as changes in office usage, growth in logistics and demand for residential housing continue to shape the sector.