Global REITs are companies that own and operate income-producing real estate—warehouses, data centres, apartments, retail, and more—across multiple countries. Investors can access them through global property ETFs, which hold a diversified basket of these companies in a single, tradeable instrument.

The past two years of rate hikes weighed heavily on listed property. Borrowing costs rose, discount rates climbed, and valuations compressed across the board. Now the cycle is turning. Inflation is easing, central banks are holding rates steady, and investors are re-evaluating the sector.

The MSCI World Real Estate Index is up more than 9% year-to-date (as of August 2025) after two straight years of declines, showing that markets are already pricing in a more stable rate environment. For investors looking for both income and diversification, this may be the start of a more favourable cycle.

From Headwinds to a Pause

Central banks in major economies have moved from aggressive tightening to a wait-and-see stance. Headline inflation has cooled in the US, Eurozone, and South Africa, giving policy makers room to hold rates steady. The Federal Reserve’s most recent statement emphasised a “data-dependent” approach—widely read as confirmation that the tightening phase is largely complete.

This pause matters for listed property. A stable rate environment reduces pressure on valuations and removes much of the uncertainty around refinancing risk. It also encourages buyers back into the market. Recent monthly gains in global real estate indices confirm that sentiment is shifting toward recovery, with Asia-Pacific and North American REITs leading performance in August.

Why Interest Rates Matter for Listed Property

Interest rates affect REITs in three key ways:

1. Valuations. Higher rates mean higher discount rates and lower present values for rental income. When rates stabilise or fall, that headwind eases and valuations can rise.
2. Debt servicing. Lower or predictable borrowing costs improve cash flow and support dividends.
3. Market psychology. Public markets react quickly. Once the rate outlook stops worsening, buyers often step back in ahead of private-market pricing.

Rates are not the only factor — fundamentals like occupancy, lease terms, and sector growth still drive performance. But stabilising rates remove a major obstacle and let those fundamentals show through.

Past Cycles Show Early Movers Benefit

History shows that listed property often recovers before private market values. In past cycles, once rate hikes paused, REIT prices started to re-rate months ahead of appraisers marking up private valuations. This early move reflects how public markets price expectations quickly.

It’s not automatic—quality matters. REITs with strong balance sheets, manageable debt maturities, and stable tenants tend to lead the recovery. Those with high leverage or weak demand can lag even when rates fall. For investors, that means focusing on diversified exposure or active strategies that tilt toward stronger names.

Sector and Regional Snapshot

Not all parts of the global REIT market move together. Here’s where strength is building:

• Logistics & Industrial: Supported by e-commerce and supply chain demand. Occupancies are high and new supply is controlled, which supports rental growth.
• Data Centres: AI and cloud adoption keep demand strong. Stable financing costs help fund new capacity.
• Residential: Rental demand stays firm as affordability limits home ownership in many markets.
• Self-Storage: Short leases let operators reset rents quickly, often making this sector resilient in mixed economic conditions.
• Healthcare & Seniors Housing: Ageing populations support demand, though operator quality still matters.
• Retail: Necessity-based formats hold up well; discretionary shopping centres remain selective investments.
• Office: Still a stock-picker’s market. Location and tenant quality drive outcomes.

Regionally, Asia has led recent monthly gains, with North America following. Emerging-market REITs are also showing strong momentum, with select Asia-Pacific names posting double-digit gains year-to-date. Europe is slower but showing early signs of recovery as inflation trends improve. This is why global diversification matters—different regions turn at different times, smoothing the ride for investors.

Capturing the Opportunity with Global Property ETFs

For most investors, buying individual REITs across several countries is costly and complex. Global property ETFs solve that problem by offering instant diversification, daily liquidity, and access to hundreds of listed property companies in one trade.

Popular offshore options like the iShares Global REIT ETF or Vanguard Global Real Estate ETF are widely used, but they require foreign accounts and carry currency conversion costs. Reitway Global’s ETFs are listed on the JSE, ZAR-denominated, and designed specifically for South African investors who want seamless global exposure.

Using ETFs means investors don’t have to pick sectors or regions themselves—the fund does the allocation, rebalances as needed, and distributes income. This makes ETFs an efficient way to position for a potential global REIT recovery without taking single-country or single-stock risk.

Reitway Global’s Five ETFs at a Glance

Our range lets investors choose between pure index tracking, ESG alignment, active management, diversification tilts, or income priority—while still keeping their exposure global and ZAR-denominated.

Why Invest with Reitway Global

Reitway is one of the few managers in South Africa that focuses exclusively on global listed property. That focus gives us a clear edge:

• Specialist expertise: Every portfolio decision is built on deep research into REIT fundamentals, global macro trends, and valuation opportunities.
• Choice for every objective: Our five ETFs cover passive, diversified, active, ESG, and income strategies — letting investors pick the exposure that fits their plan.
• Seamless local access: Because the ETFs are listed on the JSE and denominated in rand, investors avoid offshore admin and currency conversions while still getting worldwide reach.
• Investor education: Our Insights and tools are designed to inform, not just promote, helping investors understand the asset class and invest with confidence.

This combination of focus, product range, and investor support is what makes Reitway the go-to partner for global listed property exposure.

A Step-by-Step Roadmap for Investors

A disciplined approach helps take the guesswork out of entering the market.

1. Define your objective. Decide if you want long-term total return, steady income, or both. Your goal determines whether you choose RWGPR for broad exposure, RWINC for income, or RWAGP for active selection.
2. Choose your exposure style. Passive investors may prefer RWGPR or RWDVF. ESG-minded investors can opt for RWESG. Those wanting active management can look at RWAGP.
3. Size your position. Treat global listed property as part of your equity allocation—big enough to diversify but balanced against other assets.
4. Stage your entry. If you worry about “buying too early,” split your planned allocation into several tranches over a few months. This smooths timing risk and lets you capture income distributions along the way.
5. Set review points. Track your holdings quarterly, not daily, and focus on whether the macro story—stable or easing rates—remains intact.

This simple process helps investors stay consistent, avoid emotional decisions, and position effectively for a potential re-rating in global listed property.

Key Risks and How to Manage Them

Every investment carries risk, and global property is no exception. The main ones to watch:

• Interest-rate risk: If inflation rises again and central banks restart hikes, valuations may face renewed pressure. Diversifying across sectors and geographies helps cushion the impact.
• Currency risk: Global exposure means foreign currency moves can boost or reduce ZAR returns. This is part of the diversification trade-off, but investors should size allocations accordingly.
• Sector dispersion: Logistics and data centres can perform well while offices struggle. Using a broad ETF spreads exposure and reduces reliance on any single sector.
• Liquidity and sentiment: Listed markets can swing quickly. Keeping a medium-to-long-term horizon avoids overreacting to short-term price moves.

Understanding these risks and sizing positions realistically helps investors stay invested through market noise and benefit when conditions improve.

Bringing It All Together

The biggest headwind for listed property—relentless rate hikes—has eased. With central banks on pause and inflation trending lower, investors can focus again on cash flows, occupancy strength, and long-term growth themes.

Global REITs are starting to reflect this change, offering higher starting yields and potential for capital recovery. Dividend yields across global REIT indices remain near 10-year highs, giving investors a starting income level that compares favourably with developed-market bonds.

For South African investors, Reitway Global’s ETF range provides a practical way to access this opportunity: five purpose-built options, ZAR-denominated, listed locally, and designed to deliver diversified global exposure.

This combination of improving macro conditions and easy-to-access investment tools makes now a compelling time to revisit global listed property as part of a balanced portfolio.

Take the Next Step

Rates are steadying, valuations have reset, and listed property is starting to recover. If you want global exposure without offshore admin, Reitway’s five JSE-listed ETFs make it simple to act.

Contact us and Explore the Reitway Global ETF range and choose the option that fits your objective.