Zacks Industry Outlook Highlights The Berkeley Group and Sky Harbour

For Immediate Release

Chicago, IL – August 14, 2026 – Today, Zacks Equity Research discusses The Berkeley Group Holdings plc BKGFY and Sky Harbour Group Corporation SKYH.

Industry: Real Estate – Development

Link to article:https://www.zacks.com/commentary/2974557/2-real-estate-development-stocks-to-consider-as-fundamentals-rebound

2 Real Estate Development Stocks to Consider as Fundamentals Rebound

The Zacks Real Estate – Development industry constituents are poised to benefit from the recovery in demand for certain real estate property types and a slowdown in the pace of new supply, positioning players like The Berkeley Group Holdings plc and Sky Harbour Group Corporation for growth.

However, macroeconomic uncertainty is likely to weigh on the industry constituents’ performance as investors continue to delay their transactions while awaiting better price discovery.

About the Industry

The Zacks Real Estate – Development industry comprises companies primarily engaged in owning, developing and managing a variety of real estate properties, including commercial, residential and mixed-use parcels. While some developers undertake construction on their land holdings to eventually sell the properties to homebuilders, retaining them for conducting operations is also a common practice. Some industry participants actively undertake strategic activities, such as infrastructure improvement, along with land planning and development, to boost economic growth, attract quality job creators and diversify the regions in which the firms operate. These firms provide real estate leasing, stewardship, underwriting, planning and entitlement services. Real estate development companies are chiefly classified as financial ones, not construction firms.

What's Shaping the Future of the Real Estate Development Industry?

Demand Revival for Certain Asset Classes Gives Scope for Growth: Demand is reviving in select U.S. real estate asset classes, creating scope for targeted development growth. Industrial and logistics real estate continue to benefit from the e-commerce boom and ongoing supply-chain reconfiguration, including reshoring and last-mile distribution needs. Data-center developers are riding a structural wave driven by cloud computing, AI workloads, Internet of Things and growing reliance on third-party IT infrastructure. Office fundamentals are stabilizing, with U.S. leasing activity reaching post-pandemic highs as more tenants implement return-to-office plans. However, this recovery is uneven and favors high-quality, well-located assets.

Constrained Supply Helps Industry Fundamentals: Supply-demand dynamics remain favorable and continue to be a key driver of performance across the U.S. real estate development industry. The residential market remains structurally undersupplied after more than a decade of construction that fell short of household-formation and population-driven demand. Similarly, the retail real estate market also faces historically limited new supply, particularly for well-located, high-quality space, which is supporting occupancy, rental growth and tenant demand. Hence, the combination of resilient demand and constrained supply is likely to support favorable, though not uniformly positive, fundamentals for the real estate development industry.

Macroeconomic Uncertainty Woes Linger: Macroeconomic uncertainty in the United States remains elevated. Tariff adjustments and ongoing trade negotiations are raising the cost of imported goods and raw materials, increasing margin pressure across affected sectors and fueling investor skepticism about near-term economic growth. Companies dependent on complex international supply chains and global workforces now face a broader set of operational and compliance risks, stemming not only from shifting trade rules but also from tighter immigration policies and changing diplomatic relations. Against this backdrop, clients are likely to adopt a more conservative stance, while investors’ desire for greater price discovery is expected to prolong transaction timelines.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Real Estate - Development industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #105, which places it in the top 43% of 246 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential.

However, before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry Underperforms the Sector and the S&P 500

The Zacks Real Estate – Development industry has underperformed the broader Finance sector and the S&P 500 composite over the past year.

The industry has declined 22.1% during this period against the S&P 500 composite’s growth of 21.8%. The broader Finance sector has increased 13.3%.

Industry's Current Valuation

On the basis of the forward 12-month price-to-earnings (P/E), which is a commonly used multiple for valuing real estate development companies, we see that the industry is currently trading at 18.96X compared with the S&P 500’s 20.66X. The industry is trading above the Finance sector’s forward 12-month P/E of 17.05X.

Over the past five years, the industry has traded as high as 62.92X and as low as 5.80X, with a median of 12.52X.

2 Real Estate Development Stocks to Consider

Sky Harbour Group Corporation: This White Plains, NY-based company operates as an aviation infrastructure developer. It is building a nationwide network of Home-Basing Solutions (HBS) for business aircraft across the United States. The company develops, leases and manages general aviation hangar campuses that feature exclusive private hangars and dedicated facilities and services tailored for home based aircraft.

Sky Harbour targets airports in major growth markets with significant aircraft populations, limited hangar supply and strong demand for additional business-aviation infrastructure, particularly near major metropolitan areas. As of the end of the second quarter of 2026, the company operated 1.04 million square feet of hangar and associated office and support space, with approximately 2 million square feet of aviation ramp and vehicle parking.

It reported strong second-quarter 2026 results, with consolidated revenues rising 50% year over year and 13% sequentially, backed by the new campus openings during the past year and increases in occupancy and rental rates.

SKYH currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2026 EPS was revised to negative 54 cents compared to negative 57 cents over the past two months. The company’s shares have gained 21.4% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Berkeley Group Holdings plc: This Cobham, Surrey, UK-based company is a residential property developer and brownfield regeneration specialist, focused on creating homes and mixed-use communities across London, Birmingham and the South of England. The company develops large-scale urban regeneration projects that combine private and affordable housing with new infrastructure, amenities and public spaces.

Berkeley has a substantial land portfolio concentrated in London and the South-East, two of the UK’s most undersupplied housing markets. As of April 30, 2026, its land holdings comprised 52,763 plots across 59 developments, with an estimated future gross margin of approximately £6.4 billion, alongside an additional pipeline of around 11,000 plots.

BKGFY carries a Zacks Rank #3 at present. The Zacks Consensus Estimate for fiscal 2027 EPS remained unchanged at 79 cents over the past month. The company’s shares have rallied 10.1% in the past three months.

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