https://www.google.com/maps/d/edit?mid=1MezFr1ypUk3_B-jsBKHeUrgkpZXnjDM&usp=sharing

https://www.google.com/maps/d/edit?mid=1gY4gx8BWs1kw5AYEYSC5kkBxTkO6tNI&usp=sharing

https://www.google.com/maps/d/edit?mid=1DlwiM_njKDX36h3uSVpDhVBYKYkdi-M&usp=sharing

https://storage.googleapis.com/monaghans-landscaping-se1/index.html

https://storage.googleapis.com/monaghans-landscaping/index.html

https://storage.googleapis.com/fort-worth-concrete/index.html

https://storage.googleapis.com/divorcelawyereastbay-au-se2/index.html

https://storage.googleapis.com/felimon-project/san-jose-roof-repair/index.html

https://storage.googleapis.com/felimon-project/east-bay-roofers/index.html

https://storage.googleapis.com/felimon-project/davis-roofing/index.html

https://storage.googleapis.com/east-bay-kitchen-remodeling-au-se2/index.html

https://storage.googleapis.com/advosy-roofing-and-construction-ause-2/index.html

https://storage.googleapis.com/kevmor-au-se2/index.html

https://storage.googleapis.com/capitol-bonds-bridgeport/index.html

https://storage.googleapis.com/texas-lone-star-ac-and-heating-llc-au-se2/index.html

Why these ASX real estate shares could be top buys for 2025

 

 

The Motley Fool offers a range of services designed to help you achieve your financial goals. Click here to learn more about our membership options.

Access all of your premium services in our Member Centre.

TO MAKE THE WORLD SMARTER, HAPPIER, AND RICHER.

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

Why these ASX real estate shares could be top buys for 2025

Brokers like the outlook for these two names.

Image source: Getty Images

You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX real estate shares are drawing attention as 2025 approaches. This follows a mixed year for the sector, in which some shares outperformed and some lagged peers by a wide margin.

With interest rates potentially easing and demand for digital infrastructure rising, top experts believe companies like Goodman Group (ASX: GMG) and Centuria Industrial REIT (ASX: CIP) could be well-positioned for growth.

Let's jump in and see why these two stocks stand out.

ASX real estate stocks poised for growth in 2025

The first ASX real estate share rated highly by brokers is Goodman Group. The ASX REIT has shifted its focus into industrial property and data centres, which are proving to be lucrative opportunities for the company.

Goldman Sachs estimates that there will be up to US$1 trillion invested in data centres over the coming years, providing a large tailwind to players like Goodman.

Its $13 billion development pipeline includes significant data centre projects, which cater to the rising demand for cloud computing and artificial intelligence (AI).

Morgan Stanley is bullish on Goodman's outlook in 2025, according to The Motley Fool's James Mickleboro.

The investment bank has an overweight rating and a $42.40 price target on the ASX real estate stock.

With Goodman shares currently priced at $36.89 apiece, this implies a potential 15% upside at the time of writing.

As we head into 2025, the majority of brokers rate Goodman a buy. According to CommSec, seven brokers are bullish versus three on the other side of the fence.

Centuria Industrial REIT well positioned

Centuria Industrial REIT gives investors the ability to "invest in industrial property via a real estate investment trust (listed property trust)."

Its portfolio contains industrial properties catering to e-commerce and logistics businesses. It currently owns "89 high-quality, fit-for-purpose industrial assets worth a collective $3.8 billion".

As we reported earlier this week, UBS is bullish on Centuria Industrial. It cites valuation and fundamentals as its reasoning for the buy call.

The broker expects dividends per share of 16 cents in FY25 and 17 cents in FY26 from Centuria.

UBS also has a $3.80 price target on the REIT's share price, suggesting a potential upside of 31% at the time of writing.

Meanwhile, the consensus of analyst estimates rates the company a buy, according to CommSec.

For income-focused investors, Centuria's solid dividend outlook and exposure to high-demand industrial assets make it a standout option in the ASX real estate sector.

What could drive ASX real estate shares in 2025?

The Reserve Bank of Australia (RBA) has hinted that inflation is tracking towards its target. If it continues this way, the bank could potentially see lower interest rates.

Lower interest rates typically reduce borrowing costs and boost property valuations, which could provide a tailwind for ASX real estate shares.

If these factors do eventuate, it could be positive for both Goodman Group and Centuria Industrial REIT, in my view.

Experts say both names present opportunities for investors seeking exposure to ASX real estate shares in 2025.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Real Estate Shares

December 13, 2024 | Bernd Struben

The ASX 200 stock is expanding its retail holdings by almost half a billion dollars.

Read more »

Guess which ASX All Ords share just rocketed 91% on $374 million takeover news

November 28, 2024 | Bernd Struben

The ASX All Ords stock is in the takeover crosshairs at a significant premium.

Read more »

1 ASX dividend stock down 50% I'd buy right now

November 4, 2024 | Tristan Harrison

I think owning this business can help Aussies who are building wealth.

Read more »

2 ASX 200 real estate shares being bought up by directors

October 30, 2024 | Zach Bristow

Are these insiders onto something?

Read more »

2 ASX 200 real estate shares making big news on Thursday

September 26, 2024 | Bernd Struben

These two ASX 200 property stocks are grabbing headlines today. But why?

Read more »

Should ASX REITs be on your buy list right now?

September 19, 2024 | Bronwyn Allen

Analysts offer their views.

Read more »

Here's 1 ASX 200 share that could soar in the next bull market

September 18, 2024 | Zach Bristow

Brokers like the tailwinds behind this company.

Read more »

Why ASX property shares could be set for a comeback

September 11, 2024 | Zach Bristow

The recovery could be strong, too, according to one global investment giant.

Read more »

View All

Follow The Motley Fool on Google News

Get the latest from The Motley Fool Australia on Google News. Go to Google News, then click "Follow" button to add us.

Browse Articles by Category

Sign Up for Take Stock Investment news, stock ideas, and more, straight to your inbox.

Get Started Investing You can do it. Learn about investing with our Investing Education hub.

Win at Retirement Our latest articles and strategies for the post-work life you want.

Listen to Our Podcast Hear our experts take on shares, the market & how to invest.

Join Our Premium Community Join our flagship membership service, Share Advisor.

Follow The Fool!

The Motley Fool stands behind our products and our membership-fee-back guarantee. If for any reason you are not 100% satisfied with your premium subscription, simply notify us within the first 30 days and you won't pay a cent.

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.

About The Motley Fool Australia

To make the world Smarter, Happier, And Richer

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. The Motley Fool launched its Australian presence in 2011, and since then has grown to reach over 1 million Australians.

Read more about us >

Stay connected

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe at anytime. Please refer to our Financial Services Guide (FSG) for more information.

This Service provides only general, and not personalised financial advice, and has not taken your personal circumstances into account. The Motley Fool Australia operates under AFSL 400691. For more information please see our Financial Services Guide. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. The Motley Fool Australia does not guarantee the performance of, or returns on any investment.

We respectfully acknowledge the Traditional Custodians of the land where we live and work and pay our respects to all Elders, past and present, of all Aboriginal and Torres Strait Islander nations.

© 2010 - 2023 The Motley Fool Australia Pty Ltd. All rights reserved.

ACN: 146 988 052

Australian Financial Services Licence (AFSL): 400691

The Motley Fool Australia, PO Box 104, Isle of Capri, Qld 4217

Contact Details: Phone: (03) 8592 4841 Email: [email protected] Our friendly customer service team will happily get back to you as soon as they can.

Notifications

Scott Phillips just released his 5 best stocks to buy right now and you could grab the names of these stocks instantly!