In this article, we will take a look at the 14 Best Real Estate Stocks to Buy According to Hedge Funds.
In its December outlook report, Morgan Stanley said that the balance of risks and opportunities in real estate is moving away from broad macro factors like trade uncertainty, interest rates, and fiscal stimulus. Instead, performance over the next 12 to 24 months is expected to be driven more by sector-specific trends, individual markets, and asset-level fundamentals.
The firm noted that fiscal and monetary policy, along with deregulation, are creating conditions that support procyclical growth across most economies. This backdrop has improved the investment case for real estate, particularly for assets that have already repriced by 20–25% over the past three years.
The report also pointed out that a mix of motivated sellers, more active buyers, and better access to debt financing is helping create a more favorable environment for transaction activity and asset values to recover. At the same time, slower construction activity and the growing gap between rising replacement costs and current property valuations indicate that the next real estate cycle could last longer than usual, as supply is expected to remain limited.
Meanwhile, CNBC reported that the economy in 2025 did not perform as strongly as expected, which has influenced the outlook for commercial real estate this year. According to a Deloitte survey covering 850 global chief executives and senior leaders at major real estate ownership and investment firms across 13 countries, industry leaders are slightly less optimistic than they were heading into 2025. About 83% of respondents said they expect revenue to improve by the end of 2026, down from 88% in the previous year’s survey.
The survey also found that fewer firms are planning to increase spending, while more expect to keep spending levels unchanged. Even so, 68% of respondents said they anticipate higher expenses in 2026. Most participants indicated that they expect the cost of capital to improve, and growth is projected across most asset classes. Overall sentiment has eased compared with last year, but it remains noticeably stronger than levels seen in 2023, according to Deloitte’s findings.
Given this, we will take a look at some of the best real estate stocks according to hedge funds.
Our Methodology:
For our list of the best real estate stocks to invest in, we started with a list of stocks pulled from ETFs, stock screeners, and web rankings. We then utilized Insider Monkey’s Q3 2025 database to discover the best stocks held by hedge funds. The list is organized in ascending order of hedge fund sentiment around each stock.
Note: We only included companies that have recently reported noteworthy developments likely to impact investor sentiment.
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).
14. Cushman & Wakefield Limited (NYSE:CWK)
Number of Hedge Fund Holders: 19
Cushman & Wakefield Limited (NYSE:CWK) reported its Q4 2025 results on February 19, posting the highest fourth-quarter and full-year revenue in its history. Services revenue continued to move higher and rose 8% year-over-year, or 6% in local currency, compared with the fourth quarter of 2024. Capital markets revenue also stayed strong, marking its fifth straight quarter of double-digit year-over-year growth.
The company’s cash flow improved meaningfully, as it generated more than $125 million in additional cash flow compared with 2024. Michelle MacKay, Chief Executive Officer of Cushman & Wakefield, made the following comment:
“Our fourth quarter results capped off an exceptional year for Cushman & Wakefield (CWK). In 2025, we drove 34% adjusted earnings per share growth, improved cash flow by more than $125 million and prepaid $300 million in debt.”
She also said commercial real estate markets remained healthy. Demand stayed steady across major asset classes. Pricing and liquidity improved as well. She further added:
“Commercial real estate end markets are healthy, supported by solid demand across all major asset classes and improved pricing and liquidity. We have entered 2026 with excitement and momentum as we execute against the compelling long-term strategic priorities and financial targets that we presented at our 2025 Investor Day.”
Services revenue increased 8%, or 6% in local currency. Growth came from all segments. Project management stood out, especially in EMEA and APAC. Leasing revenue also improved and rose 6%, or 5% in local currency, driven by strong performance in the Americas and EMEA.
Cushman & Wakefield Limited (NYSE:CWK) operates as a global commercial real estate services firm. It serves property owners and occupiers. The company runs its business across three regions: the Americas, Europe, the Middle East and Africa (EMEA), and Asia Pacific (APAC).
13. W. P. Carey Inc. (NYSE:WPC)
Number of Hedge Fund Holders: 27
On February 17, BofA raised its price recommendation on W. P. Carey Inc. (NYSE:WPC) to $72 from $63. It reiterated an Underperform rating on the stock. The analyst said the firm had updated its price targets across the triple-net REIT sector following fourth-quarter results. The firm noted that acquisition activity remained strong in Q4, while most net lease REITs were still targeting investment spreads in the 100–150 basis point range. It also pointed out that higher investment activity could create potential upside to current guidance.
Speaking during the company’s Q3 2025 earnings call, President and CEO Jason Fox said 2025 had been an exceptional year for W. P. Carey, driven by consistent execution across its platform. He noted that the company delivered solid financial results and strengthened its position for long-term growth. Fox highlighted several milestones, including 5.7% growth in AFFO, record investment activity, industry-leading rent growth, and a total shareholder return of 25%. He added that the company was well-positioned to carry that momentum into 2026, supported by a strong pipeline of deals, continued access to favorable capital, expected rent increases, and stable tenant credit quality.
Fox also said the company completed a record $2.1 billion in investments during the year. These deals came with a weighted average initial cash cap rate of 7.6% and an average yield slightly above 9%, with lease terms averaging 17 years. He noted that industrial and warehouse properties made up the majority of activity, accounting for 68% of total investments, while retail represented 22%. Geographically, he said 26% of investments were made in Europe, with the remaining 74% focused on North America.
He also pointed to the company’s $322 million investment in Life Time Fitness properties, which became its third-largest tenant based on annual base rent. In addition, Fox said W. P. Carey had officially launched its Carey Tenant Solutions platform. He explained that the platform had already completed $50 million in projects, with another $290 million underway, and was expected to play a larger role in future growth through build-to-suit developments, expansions, and redevelopment opportunities.
W. P. Carey Inc. (NYSE:WPC) operates as a net lease real estate investment trust, owning a diversified portfolio of commercial properties. Its portfolio includes 1,662 net lease properties spanning about 183 million square feet.
