North American Real Estate Leads Global Gains as US Mortgage Rates Edge Higher
Global real estate markets show mixed performance, with North America driving overall gains while US mortgage rates see a slight increase amid ongoing economic adjustments.
The story
The global real estate landscape is presenting a bifurcated picture this week. North America continues to be a strong performer, posting a year-to-date total return of 16.1% through June 10, according to the FTSE EPRA Nareit Developed Extended Index. The data center sector is a standout, delivering a 31.1% year-to-date total return. In contrast, Developed Europe has seen a 1.6% decline year-to-date, and Developed Asia dropped 3.1%. Meanwhile, the FTSE Global All Cap index struggled in June with a month-to-date return of -3.7%, partly due to geopolitical tensions.
In the United States, mortgage rates have edged higher, with the average 30-year fixed rate at 6.60% as of June 12, according to the Mortgage Bankers Association. Freddie Mac reported a similar average of 6.52%. Despite these increases, May saw existing-home sales rise to 4.17 million (seasonally adjusted annual rate), and median house prices increased 1.3% year-over-year. This indicates a market where buyers are still active, even as borrowing costs remain elevated.
G20 + UAE this cycle
| Country | Price Yoy Pct | Prime Yield Pct | Mortgage Rate Pct | Direction |
|---|---|---|---|---|
| Argentina | 52.5 | tightening | ||
| Australia | 5.73 | flat | ||
| Brazil | 10.71 | flat | ||
| Canada | 3.77 | flat | ||
| China | 3.06 | easing | ||
| France | 3.1 | flat | ||
| Germany | 0.3 | 3.5 | flat | |
| India | 3.5 | flat | ||
| Indonesia | flat | |||
| Italy | 3.56 | flat | ||
| Japan | 1.44 | tightening | ||
| Mexico | flat | |||
| Russia | tightening | |||
| Saudi Arabia | flat | |||
| South Africa | flat | |||
| South Korea | flat | |||
| Turkey | 8.66 | tightening | ||
| United Kingdom | 4.82 | tightening | ||
| United States | 1.7 | 6.52 | tightening | |
| UAE | 6.0 | 3.2 | flat |
UAE corner
The Dubai Land Department (DLD) has announced a significant expansion of freehold ownership, allowing property owners in 457 plots across the Al Jaddaf areas and along Sheikh Zayed Highway to convert their ownership status to freehold. This move removes previous nationality restrictions, making these properties more attractive to international investors. DLD CEO Marwan Ahmed bin Ghalita noted that this initiative aims to boost the market value of real estate and attract new capital, aligning with Dubai's 2033 real estate strategy to increase transactions by 70% and market value to AED 1 trillion.
India corner
Bengaluru continues to be a prime destination for Non-Resident Indian (NRI) real estate investment, driven by its robust IT sector, strong rental demand (offering 3-5% yields), and consistent price appreciation. The city's RERA-regulated market provides an added layer of protection for NRI buyers, and ongoing infrastructure development, such as new metro lines and airport expansion, is opening up fresh investment corridors. Meanwhile, a Gurgaon Property Expo is underway from June 13-14, catering specifically to NRIs planning investments in India, allowing them to research and shortlist properties ahead of potential year-end visits.
Residency-by-investment
Portugal Golden Visa
Country: Portugal
Threshold: €250,000 (cultural donation) or €500,000 (fund investment)
What Changed: Citizenship now takes 10 years, up from the previous five, under the May 2026 Nationality Law. Real estate is no longer a qualifying route since 2023.
Greece Golden Visa
Country: Greece
Threshold: €250,000 to €800,000 (real estate)
What Changed: A tiered zone system was introduced in 2026. Zone A (Attica, Thessaloniki, Mykonos, Santorini) requires €800,000. Zone B (rest of mainland, smaller islands) requires €400,000. Zone C (€250,000) is restricted to commercial-to-residential conversions or listed building restoration.
Malta Permanent Residence Programme (MPRP)
Country: Malta
What Changed: Malta's Citizenship-by-Investment route was struck down by the European Court of Justice, but the MPRP residency program continues.
Spotlight country
Germany's real estate market entered 2026 on a subdued note, with a recovery yet to fully materialize. In the first quarter of 2026, office investment volume stood at €1.8 billion, a 5% increase year-over-year but still significantly below the long-term average.
Residential investment also saw a decline, down 13-16% year-over-year to approximately €1.6-1.88 billion in Q1 2026. The market faces structural challenges, including a persistent housing shortage despite population growth, and high construction costs.
Mortgage rates have stabilized around 3.2% to 3.8%. Energy-efficient properties are highly sought after, and the rental market in major cities like Berlin, Munich, and Hamburg continues to strengthen due to demand outpacing supply.
What we'll be watching
- The Federal Reserve's FOMC meeting on June 16-17, where policy decisions will be assessed.
- The release of the Federal Reserve Board's annual bank stress test results on Wednesday, June 24.
- May Housing Starts data, expected to be released during the week of June 14.
- May Retail Sales figures, also anticipated in the coming week.
- The June NAHB homebuilder survey, with consensus expecting a reading of 37, unchanged from last month.
- The New York Fed Empire State manufacturing survey and Industrial Production and Capacity Utilization for May.
Reporting + analyst voices: grounded via Google Search at publish time.