Explore the shifting dynamics of the region’s real assets landscape amid evolving economic conditions. The study identifies both cyclical and structural investment opportunities, emphasizing resilience, innovation, and sustainable growth as key priorities for investors.
Offices in markets such as India, Australia, and Japan could offer an attractive entry point with rental growth prospects looking more positive. Core assets with proximity to amenity and public transport are increasingly sought after, with the gap in occupier preference for centralised and decentralised locations widening.
Industrial & logistics assets in locations with higher potential for manufacturing occupier demand, such as Southeast Asia and India are expected to outperform. Dry logistics in Korea will continue to capture investors’ interest. E-commerce continues to evolve, helping to drive demand for logistics space in fast adopting markets.
While retail demand has been more conservative due to global trade uncertainty, most markets are expected to see rent growth continue in 2025 and 2026. Tailwinds include population growth and rate cuts in Australia; solid tourist arrivals offsetting slower domestic consumption in Japan and Korea; and strong leasing demand from local retailers in India.
Living sector demand continues to accelerate despite the limited scale of this asset class in Asia Pacific. Investors are advised to stay focused on established markets such as Japan, where cash-on-cash yields remain attractive and vacancies remain low. Other options include developing or acquiring projects for build-to-rent or student accommodation in markets with significant supply shortfalls, such as Australia and Hong Kong SAR.
Data centres continue to grow as a primary investment option for investors in Asia Pacific. With demand for AI strengthening, supply across most markets in Asia Pacific is projected to be unable to meet demand. Opportunities for investment in tier I markets such as Japan, Australia and Korea will continue to surface as operators look to recycle assets, while development partnerships will remain an option in growing Southeast Asian markets.
