Zown is very optimistic about the future of Canadian REITs, predicting a turnaround after a period of volatility. Several factors are expected to contribute to this positive outlook, including a potential shift in the political landscape, favorable economic conditions, and increased investor interest in yield-generating assets.

RBC believes that 2025 will be a year of revival for the REIT sector. They anticipate that a combination of factors, such as a change in leadership in a major economy, stabilization of interest rates, and a potential weakening of the Canadian dollar, will create a favorable environment for REITs.

They also also suggest that a significant amount of capital is waiting to be invested, and a portion of this capital could flow into the REIT market, driving up demand and potentially reducing the current discount on REIT prices compared to their underlying asset values.

Among the favored REITs are those focused on senior housing, retail, residential, and industrial properties. The recent trend of central banks lowering interest rates is expected to make yield-focused investments more attractive, potentially leading to a shift of capital into the stock market, including REITs.

Despite a recent market downturn, the global REIT sector managed to achieve a modest positive return last year. Experts believe that REITs are now well-positioned to offer investors attractive opportunities.

Several investment themes are being highlighted, including the growing demand for data centers to support advancements in artificial intelligence and the increasing need for senior housing in Canada due to the aging population. Strong demand and limited supply in the senior housing market are expected to lead to higher occupancy rates and potentially strong performance for Canadian senior housing operators.

Of course, we are not qualified to provide financial advice. This article is simply our opinion on the future of the REIT market and little else.

Join the Movement. Own Your Future.

At Zown, we’re redefining homeownership. It’s not just about buying a house—it’s about creating a future where more people can own, build wealth, and take control of their lives. With our Upfront Down Payment options and expert real estate services, we make home buying simpler, smarter, and more accessible.

🏡 Take the first step. See how much you qualify for today.

#CanadianRealEstate #InterestRates #HousingMarket #MortgageRates #HomeBuying #RealEstateInvesting #RentingVsBuying #HousingAffordability #MarketTrends #Zown #FinancialZown