Investors flee tech: Real estate stocks take over

TL;DR

• Investors are rotating out of technology stocks and into the real estate sector, according to Seeking Alpha
• The move is part of a broader risk-averse market with the Fear & Greed Index at 15/100
• Tokenized real estate is growing markedly and could attract additional capital in such a rotation
• Regulatory challenges and limited track record make tokenized real estate a relatively immature segment

Capital seeks safer harbor

In recent weeks, investors have increasingly shifted their portfolios away from high-growth technology stocks and toward more defensive sectors. Real estate stocks — historically regarded as a defensive asset class with relatively stable cash flows — are among the winners of this reallocation, according to Seeking Alpha.

This movement is taking place in a market characterized by clear risk aversion. The Fear & Greed Index currently stands at 15 out of 100, signaling extreme fear among market participants.

Broad risk-off sentiment weighs on markets

The backdrop for the rotation is multifaceted. Capital is moving not only from tech to real estate, but also toward consumer staples and industrials. Cryptocurrencies including Bitcoin, Ether, and XRP have fallen between 4 and 10 percent over the past week, according to CF Benchmarks. Gabe Selby, Head of Research at CF Benchmarks, characterizes the move as "a broad market cooldown rather than anything fundamentally wrong with crypto itself."

Oslo Børs and Norwegian real estate companies are not directly mentioned in the source material, but the trend is relevant for Norwegian investors with exposure to international REITs and real estate funds.

Tokenized real estate: Growing — but approach with caution

Alongside the traditional real estate rotation, the market for tokenized real estate is expanding rapidly. According to industry data, this segment was valued at $3.8 billion globally in 2025, with projections suggesting it could reach $26.4 billion by 2034 — an annual growth rate of 24 percent. Secondary trading in tokenized real estate securities is reported to have increased by more than 185 percent year over year in 2025.

Institutional investors accounted for an estimated 41.3 percent of total market revenue in this segment in 2025. It is nonetheless important to note that parts of the growth projections stem from industry reports with commercial interests, and that historical data remains limited.

Regulations holding back growth

Despite the growth figures, there are significant obstacles to broader adoption. Eric Pollackov, Global Head of ETF Capital Markets at Invesco, is unequivocal: "Regulatory risk is almost the whole thing. That's what's keeping institutions out." The U.S. regulatory framework, which classifies real estate tokens as securities, is described by analysts at KPMG and EY as a "significant barrier to market growth."

Additional challenges cited include a lack of historical data, an immature secondary market, and technical hurdles related to scalability and interoperability between different blockchain solutions.

What does the rotation mean going forward?

The ongoing capital rotation out of tech and into real estate reflects classic defensive positioning in an uncertain market. Whether this trend will persist depends, among other things, on macroeconomic developments, interest rate expectations, and any policy signals from central banks — including Norges Bank.

For investors considering exposure to the real estate sector, analysts recommend distinguishing between liquid, exchange-listed real estate stocks and more immature segments such as tokenized real estate, where the risk profile is considerably different.

Sources: Seeking Alpha, CF Benchmarks, KPMG, EY, Invesco