Capital Markets

KEY TAKEAWAYS

• Talent access is the defining driver of location strategy, cited by 78% of respondents. Employment and real estate costs follow as critical considerations.
• Global talent hubs remain dominant. San Francisco and New York top Savills A&E Talent Index, with London, Zurich and Singapore also ranking strongly for depth and quality of expertise.
• Cost-competitive alternatives are gaining appeal. Markets such as Dallas and Oslo offer access to specialist talent with lower overall employment and occupancy costs.
• Space requirements remain under review. 39% of firms are maintaining square footage, 35% are consolidating and 25% are expanding.

Strong tourism inflows and new infrastructure development boost hotel performance in Vietnam; Mumbai outperforms other Indian cities thanks to solid corporate, MICE and domestic demand; Hotel pricing in Goa moderates despite strong performance throughout peak season.

​​​Renewal rates remain high in Australia amid tight availability of super prime space; Solid domestic consumption and flight to quality drive expansionary demand in Japan; Expansionary demand in Vietnam ensures occupancy remains high despite elevated supply.

Leasing sentiment in Mainland China strengthens on expansionary demand from local and international retailers; Market polarisation seen in Korea amid strong inbound demand and flat domestic consumption; Retailer demand in Vietnam strengthens but absence of new CBD supply remains bottleneck.

Domestic capital drives office investment activity in Korea, and competition for logistics assets remains strong; Interest rate hikes in Australia see investors turn from cautiously optimistic to wait-and-see mode; In Hong Kong, market sentiment improves modestly as HIBOR falls; living sector underpins investment activity.

Leasing volume in India reaches record high amid robust demand from Global Capability Centres; Occupiers in Japan prioritise core locations to attract talent amid scarce availability and rising rents; Solid demand pushes down Singapore CBD vacancy to record low despite cautious global outlook.