On January 14, commercial real estate services firm CBRE published a detailed report on the U.S. real estate market outlook for 2026. The firm expects commercial real estate investments to touch the $562 billion mark, which translates into a 16% jump. The market is expected to be characterized by a recovery in leasing activity and income-driven returns for investors. Reflecting on various sub-segments within the broader real estate landscape, the firm projects a continued “flight to quality” among investors in industrials. For retail, they estimate success in select areas strongly aligned with consumer demand. Within the multifamily segment, the foremost priority will be tenant retention in current market conditions.
Hence, the market will require investors to be diligent in their capital allocation approach. Within the broader real estate market, certain business models are established to perform core functions. This is a reference to real estate services companies that facilitate important processes involved in the real estate market. With the highlighted projections for 2026, these services firms are likely to position themselves to benefit from evolving market dynamics.
With that background, let’s explore our 10 Best Real Estate Services Stocks to Buy According to Hedge Funds.
Photo by Owen Lystrup on Unsplash
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed real estate services companies with market capitalizations above $2 billion and share prices above $5. Also, we shortlisted only stocks with at least 10% upside potential according to TipRanks consensus as of the February 5 close. In the final part of the screening, we identified the number of hedge funds that held positions in these stocks as of the end of the third quarter of 2025. Finally, we selected 10 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Cushman & Wakefield (NYSE:CWK)
Number of Hedge Fund Holders: 19
Cushman & Wakefield (NYSE:CWK) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 17, the price target on Cushman & Wakefield (NYSE:CWK) was raised from $16.50 to $19 by Morgan Stanley analyst Ronald Kamdem, who maintained his Overweight rating on the stock. His revision implies potential upside of almost 26% from the prevailing level.
The analyst carries an in-line estimate of the REIT market with a projected return of 15%. He sees strength in apartments, billboards, and data centers, while maintaining a neutral outlook on industrial, cold storage, and triple-net.
On January 13, Barclays analyst Brendan Lynch reaffirmed his Equal Weight rating on Cushman & Wakefield (NYSE:CWK). The analyst also increased his price target on the stock from $18 to $19.
Lynch’s rating was part of Barclays’ broader adjustments to the REITs segment in line with its 2026 outlook. Despite a Neutral stance on the overall REITs market, the firm sees potential across apartments, storage, and family rentals for the coming year.
Cushman & Wakefield (NYSE:CWK) is a commercial real estate services firm that delivers integrated services around leasing, capital markets, occupancy services, and valuations. The company focuses on facilities management, development, transaction management, and consulting services. They also offer property management services such as engineering, lease compliance, tenant experience, and sustainability services.
9. Colliers International Group (NASDAQ:CIGI)
Number of Hedge Fund Holders: 23
Colliers International (NASDAQ:CIGI) is one of the 10 best real estate services stocks to buy according to hedge funds.
On February 3, Raymond James analyst Frederic Bastien upgraded his rating on Colliers International (NASDAQ:CIGI) from Strong Buy to Outperform. The analyst also raised his price target on the stock from $195 to $200, implying upside of more than 49%.
Bastien noted that the $700 million acquisition of Ayesa Engineering has enabled the company to improve its engineering and project management capabilities. This debt-funded deal is expected to be around 5% accretive to adjusted EPS, and also strengthens the company’s footprint across transportation, water, buildings, and energy spaces.
On January 22, Citizens analyst Mitch Germain maintained his Market Perform rating on Colliers International (NASDAQ:CIGI), based on the company’s growth strategy within the engineering sector. He noted that this strategy distinguishes the company from its peers and sets it up to explore organic and inorganic expansion opportunities.
Colliers International Group (NASDAQ:CIGI) provides commercial real estate services to corporate and institutional clients. The business is structured around three distinct platforms: Real Estate Services, Engineering, and Investment Management. They deliver several solutions to clients, including sales, debt finance, landlord & tenant services, maintenance, lease administration, property accounting, appraisal review, and asset valuations.
8. FirstService Corporation (NASDAQ:FSV)
Number of Hedge Fund Holders: 25
FirstService Corporation (NASDAQ:FSV) is one of the 10 best real estate services stocks to buy according to hedge funds.
On February 6, BMO Capital reduced its price target estimate for FirstService Corporation (NASDAQ:FSV) from $209 to $202. However, the firm reiterated its Outperform rating on the stock, which still offers over 27% upside. This upward revision to the price target followed the company’s fourth-quarter announcement, which the firm described as a “beat.”
FirstService Corporation (NASDAQ:FSV) recorded $535.4 million in total EBITDA for 2025. Adjusted EBITDA for the company’s Residential segment exceeded consensus estimates, whereas figures for the FirstService Brands were as per consensus expectations.
On February 5, Tim James of TD Securities raised his price target on FirstService Corporation (NASDAQ:FSV) from $211 to $217 and maintained a Buy rating. His revision now yields almost 37% upside potential for investors from the prevailing level. James noted that the recent fourth-quarter announcement might reduce investor skepticism about the company’s roofing and restoration operations. Regarding valuation, the analyst mentioned:
“FirstService shares at current levels present an attractive opportunity to acquire a group of relatively predictable businesses that are well insulated from economic/tariff conditions.”
FirstService Corporation (NASDAQ:FSV) provides property management and other essential services to residential and commercial clients. The business entails two segments, i.e., FirstService Residential and FirstService Brands. It offers ancillary services, financial services, and specialized property insurance brokerage for private residential communities.
7. Newmark Group (NASDAQ:NMRK)
Number of Hedge Fund Holders: 29
Newmark Group (NASDAQ:NMRK) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 8, Alex Bond from Keefe Bruyette raised his price target on Newmark Group (NASDAQ:NMRK) from $21 to $22. The analyst maintained an Outperform rating on the stock, which he believes offers an upside potential of 36% from the current level.
On January 6, Newmark Group (NASDAQ:NMRK) announced that the company has entered into an arrangement to divest its 1.4 million-square-foot micro-bay industrial portfolio. This will be an off-market sale to the Silverman Group for $203 million. This well-diversified portfolio, which spans the Mid-Atlantic region, is comprised of 50 individual buildings and 600 tenants. It covers Maryland and Northern Virginia, which are usually faced with lots of supply constraints and are also considered to be amongst the most demographically dense industrial corridors in the U.S.
Newmark Group (NASDAQ: NMRK) operates across several functions within the commercial real estate sector. Based on a strong emphasis on data analytics and technology, it delivers investment sales and commercial mortgage brokerage services, along with valuation, advisory, property management, due diligence, and other services.
6. KE Holdings (NYSE:BEKE)
Number of Hedge Fund Holders: 37
KE Holdings (NYSE:BEKE) is one of the 10 best real estate services stocks to buy according to hedge funds.
As of the close of play on February 5, consensus sentiment around KE Holdings (NYSE:BEKE) was strongly bullish. The stock had received coverage from 4 analysts, 3 of whom assigned Buy ratings and 1 gave a Hold call. With no Sell rating, it carries a projected median 1-year price target of $21.02, implying almost 14% upside.
On February 3, Timothy Zhao at Goldman Sachs raised his price target on KE Holdings (NYSE:BEKE) from $18.60 to $19. However, the analyst downgraded the stock from Buy to Neutral at the same time, as he sought further visibility into property market stabilization. Zhao still sees the company’s valuation to be fair after a recent rally, but could see more potential following volumetric recovery across secondary home transactions, enhanced profitability from core home transactions, strong rebound in new initiatives revenue, and elevated shareholder returns.
KE Holdings (NYSE:BEKE) provides an integrated online and offline platform for housing transactions, rentals, renovations, and related services across the Chinese market. The business is structured around 5 segments, i.e., Existing Home Transaction Services, New Home Transaction Services, Home Renovation & Furnishing, Home Rental Services, and Emerging & Other Services.
5. Jones Lang LaSalle (NYSE:JLL)
Number of Hedge Fund Holders: 40
Jones Lang LaSalle (NYSE:JLL) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 28, Alex Kramm from UBS reaffirmed his Buy rating on Jones Lang LaSalle (NYSE:JLL). In the process, he raised his price target on the stock from $360 to $410, implying more than 22% upside for investors.
Back on January 13, Brendan Lynch from Barclays also raised his estimated price target on Jones Lang LaSalle (NYSE:JLL) from $351 to $360. The analyst maintained his Equal Weight rating on the stock, based on Barclays’ revised 2026 outlook for Real Estate Investment Trusts. The firm maintains its Neutral forecast for the segment but expects apartments, storage, and single-family rental REITs to deliver the highest upside. The firm is least optimistic on cold storage and retail REITs for the coming year.
Jones Lang LaSalle (NYSE:JLL) is a real estate services and investment management firm with operations in more than 80 countries. They cover a diverse range of property types, including commercial, industrial, hotel, residential, and retail. The company offers services like purchasing, investing, development, and management of properties.
4. Compass Incorporated (NYSE:COMP)
Number of Hedge Fund Holders: 52
Compass Incorporated (NYSE:COMP) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 26, Dae Lee of J.P. Morgan initiated coverage of Compass Incorporated (NYSE:COMP) with an Overweight rating. The analyst set a $15 price target, implying almost 25% upside.
Lee attributed his stance to the company’s margin enhancements, unified technology platform, and transformational inorganic growth strategy that has proven to be highly transformative. He also labeled the company as “premier consolidator in U.S. residential real estate.”
Lee also referred to the company’s merger with Anywhere Real Estate, which he believes has the potential to unlock synergies worth more than $300 million through recurring high-margin revenue.
On January 20, Benjamin Black from Deutsche Bank also upgraded his rating on Compass Incorporated (NYSE:COMP) from Hold to Buy. In the process, he also raised his target price on the stock from $9 to $16, which now results in an upside potential of almost 33% from the prevailing level.
Compass Incorporated (NYSE:COMP) is a technology-led residential real estate brokerage firm. It operates mobile apps and online platforms such as CIRE and Compass to deliver services such as cloud-based CRM, marketing, client service, and title & settlement services. It also enables consumer-grade user interfaces, insightful dashboards, and reporting.
3. CoStar Group (NASDAQ:CSGP)
Number of Hedge Fund Holders: 57
CoStar Group (NASDAQ:CSGP) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 27, Jake Fuller from BTIG upgraded his rating on CoStar Group (NASDAQ:CSGP) from Neutral to Buy. He forecasted a target price of $80 for the stock, which yields almost 57% upside potential from the current level.
Fuller based his upgraded stance on the company’s growth in its sales force. In his view, it has proven to be a major catalyst driving bookings acceleration and the resulting double-digit organic growth.
On January 8, Faiza Alwy from Deutsche Bank also maintained a Buy rating on CoStar Group (NASDAQ:CSGP). She reduced her price target on the stock from $85 to $68, which still offers an upside potential of over 33%.
Alwy noted that negative market sentiment was fueled by the company’s revised 2026 and medium-term outlook, which included a fresh $1.5 billion share buyback authorization. Amid fixed costs related to shared resources, the outlook suggests commercial margins are expected to decline by 4%.
CoStar Group (NASDAQ:CSGP) provides commercial real estate analytics and online marketplaces. It operates various platforms such as CoStar Property, CoStar Markets, CoStar Leasing, CoStar Sales, Home.com, and LoopNet. Through these platforms, it delivers services around unique property types, including office, industrial, retail, multifamily, hospitality, and student housing.
2. CBRE Group (NYSE:CBRE)
Number of Hedge Fund Holders: 71
CBRE Group (NYSE:CBRE) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 13, Brendan Lynch of Barclays maintained an Overweight rating on CBRE Group (NYSE:CBRE). He also raised his price target estimate for the stock from $190 to $192.
Lynch shared his forecasts on CBRE Group (NYSE:CBRE), as part of Barclays’ 2026 outlook for Real Estate Investment Trusts. The firm still has a Neutral view on the market but made some adjustments to its estimates for 2026. It sees upside potential for REITs that have a focus on apartments, storage, and single-family rentals. However, the firm takes a conservative view on cold storage and retail REITs.
On January 8, Jade Rahmani at Keefe, Bruyette increased his target price for CBRE Group (NYSE:CBRE) from $185 to $192. The analyst reaffirmed an Outperform rating on the stock, which now offers a revised upside potential of nearly 16%.
CBRE Group (NYSE:CBRE) is the largest commercial real estate investment and services firm in the world. It covers a range of functions and operates across segments, including Advisory Services, Global Workplace Solutions, and Real Estate Investments. Its service offerings include facilities & project management, leasing, capital markets, valuations, and more.
1. Zillow Group (NASDAQ:ZG)
Number of Hedge Fund Holders: 74
Zillow Group (NASDAQ:ZG) is one of the 10 best real estate services stocks to buy according to hedge funds.
On January 29, Trevor Young at Barclays upgraded his rating on Zillow Group (NASDAQ:ZG) from Underweight to Equalweight. He also raised the price target from $66 to $72, implying 34% upside. The favorable revisions were based on promising revenue and adjusted EBITDA growth anticipated for the coming year.
On January 13, the price target on Zillow Group (NASDAQ:ZG) was reduced from $90 to $85, and the stock was assigned an Outperform rating by Citizens analyst Andrew Boone.
Although the revised price target still yields an impressive upside of over 58%, the analyst reflected on the merger between Compass Incorporated (NYSE:COMP) and Anywhere. The deal has led to some concerns for Zillow Group (NASDAQ:ZG), stemming from the two merged companies’ combined Private Exclusives inventory. He noted that Compass Incorporated (NYSE:COMP) allows users to access its non-public listings, and the cumulative effects of these factors might lead to Zillow becoming an inferior choice for users.
Zillow Group (NASDAQ:ZG) is a technology-enabled platform for the real estate market, operating through websites and mobile applications. It offers marketplaces for rentals, construction, agents, and advertising of properties. Moreover, it also offers SaaS solutions for real estate transaction management. The company ensures a seamless experience for users who benefit from end-to-end real estate transaction solutions.
While we acknowledge the potential of ZG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZG and that has 100x upside potential, check out our report about this cheapest AI stock.
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