NEW YORK–The global REIT market size is estimated to grow by USD 350.2 billion from 2024-2028, according to Technavio.
The market is estimated to grow at a CAGR of 2.87% during the forecast period. The increase in global demand for warehousing and storage facilities is driving market growth, with a trend towards the emergence of self-storage as a service, Technavio said in a statement. “However, vertical integration by e-commerce companies poses a challenge.”
REITs are a popular investment option for those seeking income from income-producing real estate. Both publicly traded REITs and non-traded REITs allow individual investors access to commercial real estate, the report said.
“The global expansion of e-commerce is driving up the demand for warehousing solutions as online sales continue to rise. Major players in the industry, such as Amazon, Alibaba, JD.com, and IKEA, are responding by establishing their own warehouses to manage the increased sales volume,” the report said. “In November 2021, Alibaba’s logistics subsidiary, Cainiao, announced plans to create a network of smart warehouses in Southeast Asia, including Vietnam, Indonesia, Malaysia, and Singapore. This network, consisting of Cainiao Hubs, will encompass a significant land area to accommodate the growing e-commerce market in the region.”
