High interest rates, a slow recovery in mainland China and geopolitical tension weighed on the Asia Pacific real estate market in 2023. While these concerns are set to persist into 2024, CBRE expects an upturn to commence by mid-year.
From an economic perspective, the U.S. economy is poised for a soft landing in 2024, and the downward interest rate cycle in Asia Pacific is expected to commence mid-year.
The office market will continue to witness a supply boom and occupiers will leverage the higher availability to drive flight to quality and workplace optimisation. Prime office and green space will see growing demand.
In the retail space, despite a cautious approach to CapEx and store network planning, retailers are poised to capitalise on favourable market conditions to upgrade and expand.
Logistics occupiers’ appetite for expansion is expected to moderate further, and occupiers will give closer scrutiny to real estate plans and capital expenditure.
Expectations are that while hotel ADRs should normalise in most markets, occupancy growth in well-managed assets should drive revenue growth.
Commercial real estate investment is expected to remain muted in H1 2024. However, H2 2024 will see an uptick in investment activity on the back of re-pricing and interest rate cuts.
This report was originally published in https://www.cbre.com/insights/books/asia-pacific-real-estate-market-outlook-2024
Download the Report Read MoreThere are signs that interest rates have peaked in some markets in APAC with expectation on more market activities and a gradual recovery in 2024.
The APAC real estate sector was experiencing a low transaction environment in Q4 2023. Owners, investors, and occupiers remained cautious about real estate investments with a lot longer due diligent process. However, the signs of peak interest rate in some APAC markets are resulting a more positive sentiment towards investments in 2024.
Key Highlights in Q4 2023:
Office Sector
Retail Sector
Industrial Sector
During the past years, businesses have experienced a series of once-in-a-generation challenges, forcing them to re-evaluate how they operate. From COVID-19 to geopolitical instabilities, these challenges have shown that individual events, activities and decisions all have impacts that cascade throughout a value chain, potentially with global consequences.
The challenges posted by COVID-19 have underscored the true meaning and importance of ‘Business as Mutual’. No man is an island, and no business can act independently. We need to work together in order to thrive. One thing is clear: moving forward, business as usual is obsolete. We must transition to Business as Mutual.
Read MoreThe Global Real Estate DEI Survey is the only corporate study of diversity, equity and inclusion (DEI) management practices and data benchmarking in the commercial real estate (CRE) industry.
This third iteration of the Global Real Estate DEI Survey is the result of the collaboration between six sponsoring associations NAREIM, NCREIF, PREA, REALPAC, ULI and Ferguson Partners, as well as 14 supporting associations AFIRE, AIA, APREA, AREF, BOMA, BPF, CFMA, CoreNet Global, CREFC, EPRA, NAIOP, OSCRE, PFA and RICS.
This is a summary report of high-level results providing a view of DEI metrics relating to:
departure trends year-over-year.
Survey participants receive a spreadsheet with full data, providing for an in-depth look and suitable for benchmarking DEI policies and achievements against peers.
The Global Real Estate DEI Survey Volume III represents 296,902 full-time real estate employees, $1.98 trillion of assets under management, and a cross-section of the commercial real estate industry in terms of size, region and business classification.
The Survey brings together participation from 216 unique organizations which provided 236 submissions detailing their DEI practices in North America (79.2% of respondents), Europe (11.9%) and Asia-Pacific (8.9%). Data was collected between July 17 and September 29, 2023.
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