Wall St Week Ahead: Maligned US real estate sector draws buyers


Global fund managers increased their exposure to REITs by 15 percentage points in December, pushing allocations to 12-month highs. — Reuters

NEW YORK: Falling inflation and expectations of an economic soft landing are buoying hopes for US real estate stocks in 2024, even as the sector continues to lag the broader market.

Real estate investment trusts (REITs) were among the worst performing sectors over the last year, with share prices weighed down by factors ranging from high interest rates to tepid demand for office space in an era of remote work. The Real Estate sector of the S&P 500 fell 3.4% in 2023, while the broad S&P 500 index soared more than 24% last year and hit a record high on Friday.

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