Published on Apr 07, 2025 5 min read

Best Real Estate Stocks for Long-Term Growth in 2025

Advertisement

Investing in real estate stocks can be a smart way to grow your money over time. These stocks allow you to benefit from the steady growth of the real estate market without directly owning property. For long-term growth in 2025, it’s important to choose companies with strong fundamentals and a proven track record. This guide will highlight some of the best real estate stocks to consider for reliable and sustainable investment growth.

Benefits of Investing in Real Estate Stocks

Before diving into our top picks, let’s first understand the benefits of including real estate stocks in your investment portfolio.

  • Steady Income Stream: Real estate companies often pay out dividends, providing a steady income stream for investors. This can be especially attractive for those looking to supplement their retirement income.
  • Hedge Against Inflation: Real estate prices tend to rise with inflation, offering protection against loss of purchasing power over time.
  • Diversification: Adding real estate stocks to your portfolio helps diversify your investments and reduce overall risk.
  • Long-Term Growth Potential: Real estate is a long-term investment, and as such, real estate stocks have the potential for sustained growth over time.

Top Real Estate Stocks to Consider in 2025

Now, let’s take a look at some of the best real estate stocks to consider for long-term growth in 2025.

1. Brookfield Asset Management

Brookfield Asset Management (BAM) operates as a global alternative asset manager that owns a portfolio worth more than $550 billion. The company distributes its assets across real estate together with infrastructure as well as renewable energy and private equity investments. BAM continues to provide shareholders with reliable performance by rewarding them with dividend distributions and increasing stock value. As an organization that holds investments worldwide BAM maintains an ideal position to expand its real estate market presence.

2. Prologis

Prologis (PLD) is the largest industrial REIT in the world, with over 960 million square feet of logistics and distribution space spread across 19 countries. The company has a strong balance sheet and a solid history of increasing dividends, making it an attractive option for long-term investors. With the rise of e-commerce and demand for warehouse space, Prologis is well-positioned for future growth in the real estate market.

3. Simon Property Group

Simon Property Group (SPG) is one of the largest mall and retail real estate investment trusts (REITs) globally. It owns a vast portfolio of premier shopping, dining, and entertainment destinations, primarily in the United States. Despite challenges faced by brick-and-mortar retail, Simon Property Group has consistently demonstrated resilience through strategic redevelopments and diversification efforts, including investments in mixed-use properties and e-commerce partnerships.

Its robust dividend payment history, coupled with a strong balance sheet, makes SPG a compelling choice for investors seeking long-term growth and steady income in the real estate sector.

4. AvalonBay Communities

AvalonBay Communities (AVB) is a leading residential REIT that focuses on owning, developing, and managing luxury apartment communities in high-demand markets across the United States. With a significant presence in urban areas and densely populated regions, AvalonBay benefits from strong rental demand and limited housing supply.

The company prides itself on modern amenities, sustainable building practices, and a consistent track record of dividend growth. For those looking to invest in residential real estate stocks with stable cash flows, AvalonBay Communities is a solid option.

5. Realty Income Corporation

Realty Income Corporation (O), popularly known as "The Monthly Dividend Company®," is a REIT that delivers consistent income to its shareholders. The company owns a large portfolio of commercial properties leased on a long-term basis to high-quality tenants in diverse industries, including retail, healthcare, and manufacturing.

Its focus on reliable tenants and a disciplined acquisition strategy has enabled Realty Income to increase its dividend payouts for more than 25 consecutive years. For investors seeking reliable monthly income and long-term growth, Realty Income stands out as a top contender.

6. Welltower Inc.

Welltower Inc. (WELL) is a healthcare-focused REIT specializing in senior housing and medical office properties. With the aging population and rising demand for healthcare services, Welltower is well-positioned for long-term growth. The company’s strategic partnerships with leading healthcare operators and its focus on innovation and sustainability ensure its properties remain in high demand.

Welltower’s ability to adapt to changing demographics and provide stable returns makes it an attractive option for investors interested in the intersection of real estate and healthcare.

Digital Realty Trust

Digital Realty Trust (DLR) is a global leader in data center REITs, providing critical infrastructure for technology companies and enterprises worldwide. With the increasing reliance on cloud computing, artificial intelligence, and internet connectivity, demand for data centers continues to grow rapidly.

Digital Realty's extensive portfolio of over 300 data centers across six continents makes it a prime player in this niche market. The company also offers consistent dividends, making it a strong candidate for tech-focused real estate investors looking for sustainable growth opportunities.

8. Boston Properties Inc.

Boston Properties Inc. (BXP) is a premier REIT that owns and develops Class A properties in high-barrier-to-entry markets across the United States. The company's portfolio includes office, residential, and hotel properties, making it a well-diversified investment option for real estate investors. BXP has an excellent track record of creating long-term value through strategic acquisitions, development projects, and leasing activities.

With its strong balance sheet and focus on sustainable building practices, Boston Properties Inc. is a top choice for investors interested in commercial real estate with potential for long-term growth.

Final Thoughts

Investing in real estate stocks can be an excellent way to gain exposure to the real estate market while enjoying the benefits of liquidity and diversification. The companies listed above showcase strong fundamentals, growth potential, and reliable income streams, making them some of the top picks for long-term growth in 2025. However, as with any investment, it’s important to conduct thorough research and consider your financial goals and risk tolerance before making a decision.

Advertisement