How Many REITs Are There in the World?
A total of 940 listed REITs with a combined equity market capitalization of approximately $2.0 trillion (as of December 2023) are in operation around the world. As the following charts show, REITs have grown dramatically inboth number and equity market capitalization over the past 30 years going from 120 listed REITs in two countries to 940 listed REITs in more than 40 countries and regions.
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Europe and the Pacific have seen the largest growth in REITs since 2020, with Europe adding 62 REITs (31% growth) and the Pacific adding 13 REITs (25% growth).
Asia has also seen strong growth at 22% since 2020. China officially established REITs in 2021 and had 29 listed REITs in 2023. In addition, India has more than doubled its number of REITs from two in 2020 to five in 2023.
How Much of the Global GDP and PopulationDo Countries and Regions with REITs Represent?
Market capitalization for REITs has increased steadily around the world with the largest growth in North America from $8.7 billion in 1990 to $2.0 trillion in 2023. This growth is a testament to the success and durability of the REIT approach.
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As the REIT model has spread globally, current countries and regions with REITs represent 84% of 2022 global GDP, increasing from 28% of global GDP in 1990. The GDP of REIT countries and regions has increased from $6.5 billion to almost $84 trillion in this time frame.
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In 1990, REIT countries and regions had just a 6% share of global population, and currently, they account for 63% of the world’s 2022 population. Asia has driven the growth in population for REIT countries and regions, most notably with the adoption of REITs in India in 2014 and China in 2021.
Where Do I Find Information About Establishing a REIT Approach to Real Estate in my Country or Region?
Nareit has produced aGlobal REIT Approach to Real Estate Investingbrochure that addresses the benefits to economies, communities, and investors by adapting a REIT model.
What Benefit Does a Global Listed Real Estate Allocation Provide in a Diversified Investment Portfolio?
Research done by the investment consulting firm Wilshire Associates showed that an allocation to global listed real estate improved the returns of a diversified investment portfolio.
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Wilshire found that REITs play a critical role in improving investment returns and reducing risk in Target Date Funds (TDFs) – popular investment products.
TDFs are designed to simplify portfolio planning for individuals. It is expected that the majority of new 401(k) and IRA assets will be invested in TDFs over the coming decades and the retirement security of millions of Americans will depend upon their investment performance.
