14 Real Estate Stocks Hedge Funds Are Betting BIG On—Is Your Portfolio Missing Out?

In the ever-evolving landscape of real estate, investors are increasingly looking to hedge funds for direction on which stocks to buy. A recent report from Morgan Stanley highlights a shift in focus, emphasizing that the performance of real estate over the next 12 to 24 months will be more influenced by sector-specific trends and individual markets rather than broad macroeconomic factors like trade uncertainty and interest rates.

The report notes that with the current fiscal and monetary policies, coupled with deregulation, there are favorable conditions for procyclical growth across many economies. This environment has significantly enhanced the investment case for real estate, particularly for assets that have experienced a repricing of 20-25% over the last three years. A mix of motivated sellers, active buyers, and improved access to debt financing is contributing to a more favorable transaction environment, allowing asset values to recover.

However, the report also cautions that slower construction activity, along with the diverging trends between increasing replacement costs and stagnant property valuations, suggests that the next real estate cycle may last longer than usual due to limited supply. Meanwhile, a survey conducted by Deloitte involving 850 global executives from major real estate firms indicates a slight decline in optimism for the commercial real estate sector. About 83% of respondents expect revenue to improve by the end of 2026, a drop from 88% in the previous year. Despite this, many still anticipate higher expenses in 2026.

In light of these insights, it is crucial to consider which real estate stocks are currently favored by hedge funds. Based on data from Insider Monkey's Q3 2025 database, we examine some of the top real estate stocks to invest in today, organized by the level of hedge fund sentiment.

The Best Real Estate Stocks According to Hedge Funds

14. Cushman & Wakefield Limited (NYSE:CWK)

With 19 hedge fund holders, Cushman & Wakefield reported its highest fourth-quarter and full-year revenue in its history during Q4 2025. The firm saw an 8% increase in services revenue year-over-year, with capital markets revenue also showing strong growth for five consecutive quarters. CEO Michelle MacKay stated, “Our fourth quarter results capped off an exceptional year for Cushman & Wakefield. In 2025, we drove 34% adjusted earnings per share growth, improved cash flow by more than $125 million, and prepaid $300 million in debt.” The demand for commercial real estate remains strong, supported by healthy performance across major asset classes.

13. W. P. Carey Inc. (NYSE:WPC)

With 27 hedge fund holders, W. P. Carey received a price target increase from BofA, which raised its recommendation from $63 to $72 while maintaining an Underperform rating. The firm noted that acquisition activity in Q4 remained strong, with a record $2.1 billion in investments for the year. President and CEO Jason Fox highlighted a 5.7% growth in Adjusted Funds from Operations (AFFO) and stated that the company is well-positioned for long-term growth, supported by a strong pipeline of deals. Fox mentioned, “2025 had been an exceptional year for W. P. Carey, driven by consistent execution across its platform,” indicating a favorable outlook heading into 2026.

As the real estate sector navigates these complexities, the insights from hedge funds offer valuable guidance for investors looking to make informed decisions. The focus on companies that have shown resilience and growth potential, like Cushman & Wakefield and W. P. Carey, may provide opportunities for substantial returns in the coming years. With an understanding of both the risks and opportunities, American investors can position themselves strategically in this evolving market.