W
e recently compiled a list of the best real estate stocks for beginners, and American Tower Corporation (NYSE:AMT) is one of the top picks. The Federal Reserve's interest rate cuts have brought down mortgage rates, which could ease the housing market. However, this may also lead to higher home prices due to increased demand from buyers.

    Industry experts believe that lower mortgage rates will motivate more people to list their homes and enter the market. Selma Hepp, Chief Economist at CoreLogic, notes that a similar drop in mortgage rates in early 2023 led to a surge in buyer activity and higher home prices. On the other hand, Meredith Whitney, founder of Meredith Whitney Advisory Group, suggests that rates need to fall by another 50-100 basis points and home prices need to decline by 15% for the market to be healthy again.

    The future outlook for commercial real estate is more positive, with Gil Borok, Colliers U.S. and Latin America CEO, predicting that the rate cut will spur new investment sales activity and improve office occupancy. Analysts also expect the rate cut to ease financing conditions for homebuilders, leading to increased production.

    American Tower Corporation (NYSE:AMT) is a leading independent owner, operator, and developer of multitenant communications real estate, with a presence in 25 countries. The company has a solid global portfolio comprising 224,000 communications sites and benefits from strong underlying demand for its assets. AMT has successfully continued its momentum from the start of 2024 to the second quarter, driven by organic tenant billings growth and positive collection trends.

    The company expands its long-term growth potential by efficiently managing its diverse global footprint. With a clear plan for sustained long-term growth and a strong secular trend, American Tower Corporation (NYSE:AMT) is one of the best real estate stocks to buy for beginners. The stock is trading at 35 times its forward earnings, an 11.22% discount to the sector, and is held by 63 hedge funds.

    Our methodology involves using the Finviz screener to create a list of 25 real estate stocks with the highest market capitalization and selecting the most popular ones among elite hedge funds. We believe that imitating the top stock picks of the best hedge funds can outperform the market, as our quarterly newsletter's strategy has returned 275% since May 2014, beating its benchmark by 150 percentage points.