W
e're taking a closer look at CBRE Group, Inc. (NYSE:CBRE) in the context of top real estate stocks to buy according to billionaires. According to CBRE Investment Management, global listed real estate is poised for growth in 2025, potentially outperforming broad equities and offering a differentiated total return compared to private markets. The firm sees listed real estate entering an upcycle characterized by accelerating organic earnings, driven by improved supply/demand dynamics across various sectors and access to capital supporting potential acquisitions.

    CBRE Investment Management believes that the new cycle for listed real estate began in Q4 2023 with the recognition of a pause in rate hikes. This absence of hikes is expected to be beneficial for listed real estate, even without a significant drop in target rates. Historically, real estate has performed well during periods of range-bound long-term yields, such as between 2001-2007 when US 10-year bonds delivered around 4-5% returns and listed real estate generated double-digit average returns.

    The investment firm expects earnings to accelerate into 2025 across the real estate sectors, with a projected 5% global growth rate, more than double that of 2024 levels. Private-pay senior housing is expected to continue benefiting from strong demographics, while data center growth accelerates with generative AI. Cell towers are also recovering from customer churn, and retail and net leases have been performing well due to supply/demand imbalances and low capital costs.

    CBRE Investment Management views the total return opportunity for REITs as compelling, driven by a ~4% dividend yield that remains competitive versus private real estate income. As central bank target rates moderate and long-term yields remain range-bound, the firm believes listed real estate is poised to thrive.