If you are building a diversified investment portfolio and want some real estate exposure, it could be worth checking out the ASX shares in this article.
They have been named by analysts at Bell Potter as the best ASX real estate shares to buy in FY 2026. Here's what it is recommending:
Aspen Group Ltd (ASX: APZ)
The first share that gets the thumbs up from Bell Potter is Aspen Group. It is a leading provider of quality, affordable accommodation to Australian households with income under $100,000 per annum.
Bell Potter believes it is in a strong position to grow its earnings at a solid rate in the coming years. It explains:
The group has a sector agnostic, high ROE focus on sub-sectors that are nonfungible and repeatable over time. APZ's target tenant/owner sits within a very defensive segment of the market – affordable living. The national undersupply equation means that this will remain a crucial pillar of the housing market and will be upheld by robust demand and government subsidy for the foreseeable future.
APZ has upgraded guidance 3 times in FY25, and has recently stated intentions for at least 10% EPS growth over the medium term (we see upside to this, BPe c.13% 3 year EPS CAGR).
The broker has a buy rating and $3.90 price target on its shares.
Cedar Woods Properties Ltd (ASX: CWP)
Another ASX real estate share that could be a buy is property developer Cedar Woods.
The broker believes that it is well-placed for growth thanks to Australia's chronic housing shortage. It said:
CWP's pipeline is diversified by product type, price point and geography, enabling them to maintain smooth earnings throughout the cycle to ride the tailwind that is Australia's undersupply of housing.
We believe CWP is being held down (c.+15% premium to NTA vs long-term +30%) by noise from larger residential peers, and not being appropriately rated by the market (only 11x & 10x 1 year & 2 year FWD PE) for its exposure (soon to be earnings) to stronger markets such as WA, SA and SEQ. The longstanding management have a track record of being conservative (and beating) guidance, so the (1) +15% NPAT growth target set in April and (2) commentary around strong growth in FY26 demonstrates the strong level of confidence in how things are going.
Bell Potter has a buy rating and $7.30 price target on its shares.
Region Re Ltd (ASX: RGN)
Finally, Australia's largest landlord of neighbourhood shopping centres could be an ASX real estate share to buy in FY 2026 according to the broker.
It thinks its shares are being undervalued by the market, creating an opportunity for investors. The broker explains:
At current levels (trading in-line with NTA) we believe the market is not ascribing any value to the likelihood of cap rate compression (and hence valuation growth) across RGN's portfolio. This is despite several positive signals in the direct market: robust population growth, strong non-discretionary tenant sales, undersupply of retail floorspace and increased capital appetite for neighbourhood retail assets.
Whilst the immediate catalyst is valuation uplift, we also see a strong case for medium-term rental growth (c.15% under rented vs. benchmark; 8.9% occupancy cost low vs historical levels/peers), adding to our longer-term conviction in the stock.
Bell Potter has a buy rating and $2.65 price target on its shares.
