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Sectors, Industries, and the Business Cycle — Real Estate
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Real Estate

Real Estate

The real estate sector consists of companies invested in residential, industrial, and retail real estate.

  • Equity Real Estate Investment Trusts
  • Real Estate Management & Development

The main source of revenue for these companies comes from rent income and real estate capital appreciation. As a result, this sector is sensitive to interest rate changes. That said, the sector in general offers good growth potential, as real estate investments have proven to produce competitive long-term returns. It can also be used as a potential hedge against inflation as real estate values and rents tend to increase when inflation is increasing.