The theory goes something like this:
In a recession investors tend to have a "flight to quality", which usually means buying more government bonds, which pushes their interest rates lower. REITs tend to have relatively higher yields, so in comparison to government bonds, REITs become more attractive and their prices go up as well.
In 2008 all real estate valuations were crushed due to the nature of the crisis, but real estate has historically been a pretty stable asset class in recessionary environments.
In 2008 all real estate valuations were crushed due to the nature of the crisis, but real estate has historically been a pretty stable asset class in recessionary environments.