realestate

Global REIT Market to Expand by $350.2 Billion, Driven by Warehousing Demand and AI Adoption

Global REIT market to grow by USD 350.2 billion from 2024-2028 at a CAGR of 2.87%.

T
he global real estate investment trust (REIT) market is poised for a significant surge, with Technavio predicting a growth of USD 350.2 billion from 2024 to 2028. This expansion is driven by the escalating demand for warehousing and storage facilities, as e-commerce continues its relentless march forward.

    As online shopping gains traction, major players like Amazon, Alibaba, and IKEA are adapting by establishing their own logistics networks. In a notable example, Alibaba's Cainiao subsidiary unveiled plans to build a network of smart warehouses in Southeast Asia, catering to the region's burgeoning e-commerce market.

    The rise of self-storage as a service is also contributing to the growth of the REIT market. However, this trend is threatened by vertical integration efforts from e-commerce companies, which could potentially disrupt the market dynamics.

    REITs offer individual investors a unique opportunity to tap into commercial real estate investments, providing a steady income stream through publicly traded and non-traded options. As the global e-commerce landscape continues to evolve, REITs are likely to remain an attractive investment choice for those seeking stable returns from real estate assets.

Global REIT market expansion driven by warehousing demand and AI adoption worldwide.