In this article, we will take a look at the 10 best performing real estate stocks to buy according to analysts.
US Real Estate at a Glance
While uncertainty looms over the United States under the new admin in terms of tariffs, the real estate sector and especially new construction is expected to face some consequences. According to the chief economist at the National Association of Home Builders, the new tariffs could raise builder costs from $7,500 to $10,000 per home. With a third of the lumber utilized in US homebuilding coming from Canada, homebuilders will be impacted significantly by lumber cost increases. Paul Jannke, principal at Forest Economic Advisors, reiterated the adverse effects of these tariffs, stating:
“With the re-imposition of the 25% tariff on Canadian goods shipped to the U.S., we expect Canadian producers will stop shipping lumber to the U.S. Meanwhile, dealers, who have been hesitant to buy given uncertainty around the tariffs, will need to step up purchases ahead of the coming building season. This will drive prices higher.”
Danielle Hale, chief economist at Realtor.com, also discussed the potential impact of these tariffs on real estate as he said:
“Rising costs due to tariffs on imports will leave builders with few options. They can choose to pass higher costs along to consumers, which will mean higher home prices, or try to use less of these materials, which will mean smaller homes”
Amidst tariffs, the housing market is already ‘in a deep freeze’ as mentioned by Mark Zandi, Moody’s Analytics chief economist, in his interview with CNBC. Although inventories are up, they continue to be extremely low by historical standards. According to Zandi, the market is not going to come back to life to any significant degree unless the mortgage rates come closer to 6% or even into the 5% range.
With that being said, let’s move to the 10 best performing real estate stocks to buy according to analysts.
An aerial shot of a large real estate investment trust, its properties sprawling across the ground below.
Our Methodology
In order to compile a list of the 10 best performing real estate stocks to buy according to analysts, we first used a stock screener to make an extended list of the relevant companies that have gained over the past year, as of March 4. After shortlisting the stocks with the most significant gains over the past year, we shortlisted the top 10 stocks with the highest upside potential, as of March 4. The 10 best performing real estate stocks to buy according to analysts have been arranged in ascending order of their average upside potential. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Performing Real Estate Stocks to Buy According to Analysts
10. UMH Properties, Inc. (NYSE:UMH)
Average Upside Potential: 14.42%
Gain Over Past 1 Year: 16.42%
Number of Hedge Fund Holders: 10
UMH Properties, Inc. (NYSE:UMH) owns and operates manufactured home communities. The REIT has a portfolio of 139 manufactured home communities comprising approximately 26,300 developed homesites. These communities are situated in states including New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, and Georgia.
With a robust portfolio of manufactured home communities, higher mortgage rates incentivizing homeowners not to move, a limited supply, and the average cost of a manufactured home lower than that of a site-built home, UMH is positioned well in the manufactured housing market. The firm’s communities continue to experience strong demand thereby driving strong home rental occupancy and increased sales revenue. Furthermore, UMH is even better positioned for growth with 3,300 existing vacant lots to fill and more than 2,400 vacant acres on which to build nearly 9,600 future lots.
The business fundamentals of UMH Properties, Inc. (NYSE:UMH) tend to be solid and have set the stage for a strong performance in 2025. The company made substantial progress on different fronts during the year 2024. Major accomplishments include delivering a total shareholder return of 30% as well as increasing same property NOI by 10%, normalized Funds from Operations by 27%, and sales of manufactured homes by 8%.
9. CBL & Associates Properties, Inc. (NYSE:CBL)
Average Upside Potential: 15.20%
Gain Over Past 1 Year: 35.81%
Number of Hedge Fund Holders: 22
The real estate investment trust CBL & Associates Properties, Inc. (NYSE:CBL) invests in shopping centers, especially in the Southeastern and Midwestern United States. The firm’s portfolio comprises 88 total properties including 43 malls, 26 open-air centers, 5 outlet centers, 5 lifestyle centers, 5 office/hotels, and 4 managed for third parties.
The REIT has owned a strong national portfolio of open-air and lifestyle centers, market-dominant malls, and outlets in markets with strong demographics and high-growth potential for 45 years. Amidst uncertainty looming over 2025, CBL is engaging in strategic leasing and redevelopment efforts to drive operational improvements across its portfolio. In December 2024, the REIT successfully acquired its partner’s 50% interest in three of its top centers. It also strategically sold three lower-productivity mall assets in 2024 and early 2025.
The prior year was promising for CBL & Associates Properties, Inc. (NYSE:CBL) and created a strong momentum for the current year. Same-center NOI for 2024 was positive and increased 0.2% as compared to the prior year. Leasing remained robust as 1.4 million square feet of new and renewal leases were signed in the fourth quarter of the year which made the full year total reach nearly 4.5 million square feet.
8. Healthpeak Properties, Inc. (NYSE:DOC)
Average Upside Potential: 17.02%
Gain Over Past 1 Year: 20.31%
Number of Hedge Fund Holders: 37
Healthpeak Properties, Inc. (NYSE:DOC) is a real estate investment trust and S&P 500 company that invests in assets serving the US healthcare industry. The REIT is an owner, operator and developer of real estate focused on healthcare discovery and delivery. Healthpeak Properties has a diversified portfolio of healthcare properties across three core asset classes of Lab, Outpatient Medical, and continuing care retirement community (CCRC) real estate.
Healthpeak Properties, Inc. (NYSE:DOC) remains uniquely positioned. The REIT boasts a high-quality Outpatient Medical portfolio affiliated with leading health systems. In this regard, the Outpatient fundamentals have improved over the past five years thereby driving higher occupancy and rent growth. At the same time, the REIT continues to outperform the broader Lab market and has a highly differentiated 15-property senior housing portfolio with more than 7,000 units. Senior Housing fundamentals are also strong due to an aging population.
Healthpeak has been executing well, with its double-digit earnings growth over the last three years. The REIT experienced a record year of leasing in 2024 with more than 8 million square feet of executions across Outpatient Medical and Lab. Simultaneously, the firm achieved nearly $50 million of merger-related synergies during the year while completing property management internalization in 14 markets totaling over 19 million square feet.
7. KE Holdings Inc. (NYSE:BEKE)
Average Upside Potential: 17.52%
Gain Over Past 1 Year: 72.20%
Number of Hedge Fund Holders: 47
KE Holdings Inc. (NYSE:BEKE) operates Beike, an integrated online and offline platform for housing transactions and services in China. It also owns and operates Lianjia, China’s leading real estate brokerage brand which is an integral part of the Beike platform. The company operates through segments including Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services.
KE Holdings Inc. (NYSE:BEKE) is a pioneer in building the infrastructure and standards to reinvent how Chinese service providers and customers complete housing transactions including existing and new home sales, home rentals, home renovation and furnishing, and other services. The company has an extensive 23 years of operating experience through Lianjia since its founding in 2001 thereby being equipped with solid insights into customer needs and markets.
KE Holdings demonstrated a proactive growth momentum in its most recent quarter, the third quarter of 2024. For the quarter, the company recorded net revenues of RMB22.6 billion, up 26.8% year-over-year, with each of the business lines achieving solid results. The overall revenue increase was driven by the rise of net revenues from new home transaction services and the expansion of the home renovation and furnishing and home rental business.
6. TPG RE Finance Trust, Inc. (NYSE:TRTX)
Average Upside Potential: 17.79%
Gain Over Past 1 Year: 16.62%
Number of Hedge Fund Holders: 23
TPG RE Finance Trust, Inc. (NYSE:TRTX) originates first-mortgage loans greater than $50 million in primary and select secondary markets across the US. The REIT creates highly structured financing solutions for property owners with transitional capital needs across a variety of real estate asset types. As of December 31, 2024, the firm managed a $3.4 billion portfolio of assets in primary and secondary US markets.
The REIT is externally managed by TPG RE Finance Trust Management, L.P., a part of TPG Real Estate which is the real estate investment platform of global alternative asset management firm TPG. TRTX advantages from the network and market insight of TPG’s Real Estate equity investing team which invests in real estate-intensive operating companies and large portfolios of commercial properties across the US and Europe. Additionally, the REIT has decades of lending experience which enables long-standing relationships with operators, brokers, and equity providers.
While TPG RE Finance Trust, Inc. (NYSE:TRTX) sees an attractive real estate credit landscape for itself in 2025, the firm originated $562 million of loan investments in 2024. Meanwhile, the firm originated $242 million of new loan investments while receiving $110 million of loan repayments in the last quarter of the year.
5. The Real Brokerage Inc. (NASDAQ:REAX)
Average Upside Potential: 20.72%
Gain Over Past 1 Year: 69.05%
Number of Hedge Fund Holders: 18
The Real Brokerage Inc. (NASDAQ:REAX) is a real estate technology company founded in 2014. The company delivers a single seamless end-to-end customer experience by combining essential real estate, mortgage and closing services with technology. It supports more than 22,000 agents using its digital brokerage platform with a presence in all 50 US states and Canada.
The Real Brokerage Inc. (NASDAQ:REAX) has taken a new approach to the old brokerage model through a disruptive, software-based real estate brokerage that aims to be the destination brokerage for all agents by providing them with higher value at a lower cost. It is worth mentioning that the company has grown its agent count by nearly 5x since the beginning of 2022. When compared to the peer average as of 2Q 2024, The Real Brokerage Inc. (NASDAQ:REAX) has surpassed in terms of agent growth and revenue growth year-over-year.
Underpinned by industry-leading growth and innovation, the company recently recorded another good quarter. The total value of completed real estate transactions hit $14.4 billion in 2024’s third quarter, up 78% over the year. Meanwhile, the total number of agents on the platform increased 79% year-over-year. The firm has also been striving to create a technology-first real estate experience as it announced the official launch of its first fintech product, Real Wallet, which enables US agents to access their earnings instantly. The Real Brokerage Inc. (NASDAQ:REAX) also introduced Leo CoPilot, an agent command center that anticipates every agent’s unique needs and offers personalized support.
4. Jones Lang LaSalle Incorporated (NYSE:JLL)
Average Upside Potential: 23.45%
Gain Over Past 1 Year: 41.09%
Number of Hedge Fund Holders: 48
Jones Lang LaSalle Incorporated (NYSE:JLL) is a global commercial real estate and investment management company. The firm helps buy, manage, build, occupy, and invest in various types of commercial, industrial, hotel, residential and retail properties. JLL serves clients through five business segments including Markets Advisory, Capital Markets, Work Dynamics, LaSalle, and JLL Technologies.
JLL has invested more than 200 years in building a premier global brand and platform. JLL’s key differentiators setting it apart from the competition include its integrated global platform combined with local industry and sector expertise. JLL continues investing in its business to differentiate in the market and achieve superior outcomes for clients. During its recent quarter, the firm announced the launch of JLL Falcon, its artificial intelligence platform which combines its comprehensive proprietary data with generative AI models to accelerate the digital transformation of the commercial real estate industry.
Other than having a global scale and diversification across asset classes, the Fortune 500 company has strong business segments. For the fourth quarter of 2024, revenue growth rates for Markets Advisory, Capital Markets, Work Dynamics, and LaSalle stood at 11%, 32%, 15%, and 42% respectively. Only the revenue for JLL Technologies declined 9% year-over-year, based on lower contract signings in technology solutions over the past year which was partially offset by a modest growth in software services.
3. BRT Apartments Corp. (NYSE:BRT)
Average Upside Potential: 26.93%
Gain Over Past 1 Year: 15.86%
Number of Hedge Fund Holders: 2
BRT Apartments Corp. (NYSE:BRT) is an internally managed real estate investment trust that focuses on the ownership, operation, and development of multi-family properties primarily in Sun Belt locations. The multifamily equity REIT has a diverse portfolio of 28 properties in 11 states.
The REIT’s high-quality portfolio has generated above-average AFFO growth compared to multi-family non-gateway companies. BRT seeks to invest in properties and acquisitions that are well-positioned in areas demonstrating positive indications of growth with catalysts promoting employment and housing demand. A focus on Sunbelt locations offers compelling advantages to BRT due to the predominance of pro-business states, alongside better population and job growth from migration patterns and business investment.
At the same time, the operational environment in the firm’s combined portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth. On the bright side, the new supply growth in Sunbelt markets is expected to moderate in 2025 and 2026.
2. Newmark Group, Inc. (NASDAQ:NMRK)
Average Upside Potential: 31.22%
Gain Over Past 1 Year: 31.64%
Number of Hedge Fund Holders: 27
Newmark Group, Inc. (NASDAQ:NMRK) serves as a commercial real estate advisor and service provider to global corporations, large institutional investors, and other occupiers and owners of commercial real estate. The firm was founded in 1929 and is headquartered in New York City.
The leading commercial real estate services platform boasts a rapidly growing global footprint as well as relationships with many of the most significant commercial property owners, real estate developers, and investors globally. The growth story has been strong for Newmark since the firm has successfully grown its total revenues by more than 1,000% between the years 2011 and 2022 thereby becoming one of the fastest-growing commercial real estate firms in the industry.
The growth continues to accelerate for the world leader in commercial real estate as it remains positioned for strong revenue and earnings growth in 2025 and is targeting at least $630 million of adjusted EBITDA in 2026. Newmark Group, Inc. (NASDAQ:NMRK) witnessed a 41.7% increase in GAAP net income per fully diluted share and a 17.1% rise in adjusted EPS in the full year 2024 as compared to 2023.
1. Net Lease Office Properties (NYSE:NLOP)
Average Upside Potential: 41.32%
Gain Over Past 1 Year: 35.57%
Number of Hedge Fund Holders: 18
Net Lease Office Properties (NYSE:NLOP) is a real estate investment trust that has a portfolio of 39 high-quality office properties, with a majority of the properties owned by the REIT situated in the United States, with the rest in Europe.
The REIT has successfully accomplished significant expertise in the single-tenant office real estate sector in its 50-year history. Other than having a proven track record in office and net lease properties, NLOP favors from the core strength of its high-quality, net lease portfolio which remains diversified by tenant, industry, and geography in addition to favorable exposure to investment grade credit, staggered lease terms, and a consistent performance through market cycles including the global pandemic.
Net Lease Office Properties’ (NYSE:NLOP) business plan revolves around creating value for its shareholders mainly through strategic asset management and disposition of its property portfolio. In January, the real estate investment trust announced the sales of five office properties in November and December totaling $43 million. Total gross proceeds from dispositions completed during the year 2024 stood at approximately $364 million.
While we acknowledge the potential of NLOP as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than NLOP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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