The Best ASX Real Estate Stocks
to buy Now In
May 2025

Check out our Industry Experts’ report and
analysis on the Best Real Estate Stocks right now on the ASX

The Best ASX Real Estate Stocks to buy Now In May 2025

Check out our Industry Experts’ report and analysis on the Best Real Estate Stocks right now on the ASX

Why Consider ASX Real Estate Stocks?

Investors often turn to real estate stocks as a method of achieving a more diversified portfolio. Yes, this is true in respect of all sectors, but particularly in respect of real estate, because real estate is an asset class in and of itself. And real estate has a reputation as being a long-term stable investment. Land, theoretically, never goes down.

At the same time, it isn't as easy to invest in as equities, especially for retail investors. But the ASX offers the change for such investors to invest in property as easy as any other stock in any other sector. And not only do many companies pay dividends, but many companies (i.e. REITs) exist predominantly to pay dividends to their investors and pay out almost all profit made.

This section aims to shed light on the potential benefits real estate stocks can provide.

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Many property companies, particularly REITs, provide consistent dividend payouts, which can be an attractive proposition for income-focused investors. Companies like Scentre Group, Mirvac Group, and Goodman Group have a track record of regular dividends, and paying out a high proportion of their profits, providing a steady income stream.

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The property market in Australia has experienced significant growth over the years. Investing in real estate stocks gives investors the opportunity to benefit from this growth as these companies' property portfolios increase in value, and to do through the stock exchange rather than buying a physical property of their own. 

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Real estate is often considered a good hedge against inflation. As prices rise, so too does the value of real estate, and prices and by extension, the value of real estate stocks. And land, theoretically, never goes down. This can provide some protection for investors during times of high inflation.

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Key Metrics to Consider When Investing in Real Estate Stocks

Before diving into the Australian market of real estate stocks, it's essential to understand some key metrics that can help in making informed decisions.

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Funds From Operations (FFO) is the measure of cash generated by a property stock, particularly a REIT. Stocks generally pay out dividends as a % of FFO. This is a distinct measure from a company's profit. 

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Dividend yield indicates the annual dividend payment as a percentage of the stock's current market price. It can help assess the income-generating potential of real estate stocks.

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Real estate companies often carry significant debt due to the nature of the industry. A lower Debt to Equity ratio is preferable as it indicates that ownership of the company is not overly reliant on debt.

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For REITs, the NTA (Net Tangible Assets) per share is a critical measure. It is calculated as the total fair market value of the REIT's real estate assets, less any outstanding debt, divided by the number of outstanding shares.

3 Best ASX Real Estate Stocks to Buy Now in 2025

Lendlease (ASX: LLC)

Lendlease is a prominent global property and infrastructure company with a diverse portfolio across residential, commercial, and infrastructure sectors. With operations in Australia, the United States, and Europe, Lendlease has become a leading developer and manager of sustainable, large-scale projects...

Mirvac (ASX: MGR)

Mirvac is a leading integrated real estate group, excelling in the development, investment, and management of residential, commercial, and industrial properties. Based in Australia, Mirvac has a strong reputation for delivering premium assets with a focus on innovation and sustainability..

Goodman (ASX: GMG)

Goodman is a global leader in the logistics and industrial real estate sector, with a key focus on high-quality distribution centres and industrial properties. The company has built a strong portfolio across Australia, Europe, and Asia, leveraging its expertise in delivering properties..

3 Best ASX Real Estate Stocks to Buy Now in 2025

Lendlease (ASX: LLC)

Lendlease is a prominent global property and infrastructure company with a diverse portfolio across residential, commercial, and infrastructure sectors. With operations in Australia, the United States, and Europe, Lendlease has become a leading developer and manager of sustainable, large-scale projects. The company is particularly known for its focus on urban regeneration and the development of sustainable communities, such as Barangaroo in Sydney and the London-based Elephant and Castle redevelopment.

Lendlease’s commitment to environmental, social, and governance (ESG) practices makes it an attractive option for socially conscious investors. Through its integrated model, Lendlease not only develops but also invests in and manages projects, ensuring long-term value creation. Additionally, the company’s strong focus on innovation and its ability to deliver complex infrastructure projects positions it well for continued growth. Lendlease’s proven track record, along with its emphasis on green building practices, positions it as a strong contender for those looking to diversify into real estate with a focus on sustainability.

Mirvac (ASX: MGR)

Mirvac is a leading integrated real estate group, excelling in the development, investment, and management of residential, commercial, and industrial properties. Based in Australia, Mirvac has a strong reputation for delivering premium assets with a focus on innovation and sustainability. The company’s residential projects, such as its luxury apartments and master-planned communities, are highly regarded for their quality and design, while its commercial properties lead the market in terms of environmental and operational efficiency.

Mirvac has also made strides in the development of smart city technologies, integrating cutting-edge technologies into its developments to create more sustainable and liveable spaces. With a commitment to innovation, Mirvac has been actively involved in regenerating urban spaces, contributing to the revitalisation of key city precincts across Australia. The company’s investment portfolio is strategically focused on assets that deliver long-term value, with a high degree of resilience to market fluctuations. Mirvac’s focus on creating long-term, sustainable communities gives it a solid foundation for growth and makes it an appealing choice for investors seeking exposure to the Australian real estate market.

Goodman (ASX: GMG)

Goodman is a global leader in the logistics and industrial real estate sector, with a key focus on high-quality distribution centres and industrial properties. The company has built a strong portfolio across Australia, Europe, and Asia, leveraging its expertise in delivering properties that cater to the growing demand from e-commerce and logistics companies. Goodman’s assets include some of the most sought-after logistics centres globally, strategically located to serve key transportation and distribution hubs.

With the rise of online retailing, Goodman has positioned itself as a key beneficiary of the growing need for advanced logistics infrastructure. The company has also been a pioneer in integrating sustainability into its developments, ensuring that its properties are not only efficient but also environmentally friendly. Goodman’s strong relationships with major global retailers and logistics companies provide a solid foundation for future growth. Its ability to develop and manage premium industrial properties gives it a competitive edge in a rapidly growing market. For investors seeking exposure to the booming e-commerce and logistics sectors, Goodman’s strong track record and global footprint make it a compelling investment opportunity.

FAQs on Investing in Real Estate Stocks

One effective way to get a more diversified portfolio of ASX real estate stocks is through ETFs such as the VanEck Australian Property ETF (ASX: MVA).

ETFs provide exposure to a basket of stocks and industries, helping to mitigate the risk associated with investing in individual companies.

Our Analysis on ASX Real Estate Stocks

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