Insights


Real Estate: Well Positioned to Capture the Recovery

In 2021, real estate has finally joined the rally, but looking at pre-pandemic levels there is still potential to catch up with broader equity markets.

Valuations remain relatively attractive in light of recovery and reopening of the developed world.

Real estate can offer access to long-term structural growth and pockets of value that can be extracted as economies reopen.

 


Global Real Estate

Investors may embrace US recovery as the country accounts for c. 60% of the Dow Jones Global Select Real Estate Securities Index.1 Industrial REITs are the largest constituent and are fueled by e-commerce acceleration as distribution warehouses enter a golden era. Retail and office REITs represent value opportunities as prospects improve along with broader recovery. 

Read the full article on global real estate 

Europe ex UK Real Estate 

German residential is the heart of listed continental real estate. The structural supply shortage of the German housing market remains in place and enables landlords to extract value through rent increases and portfolio revaluation. As vaccination on the continent accelerates, retail and office real estate companies allow investors to capture value as these parts of the sector have not fully rerated yet. 

Read the full article on Europe ex UK real estate 

How to play the theme

Investors can access either global listed real estate or the continental European real estate market using SPDR ETFs. To learn more about these ETFs, and to view full performance histories, please visit the fund pages:

SPDR Dow Jones Global Real Estate UCITS ETF (Dist and Acc)  

SPDR FTSE EPRA Europe ex UK Real Estate UCITS ETF 

European-Domiciled ETP Segment Flows (Top/Bottom 5, $mn)

strategy-espresso-real-estate-1

Source: Bloomberg Finance L.P., for the period 10-17 June 2021. Flows are as of date indicated and should not be relied upon as current thereafter. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future. 

European-Domiciled ETP Asset Category Flows ($mn)

strategy-espresso-real-estate-2

Source: Bloomberg Finance L.P., for the period 10-17 June 2021. Flows are as of date indicated and should not be relied upon as current thereafter. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future. 

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