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With the Asia Pacific commercial real estate market sitting at the top of the interest rate hike cycle, attention continues to focus upon the sizable volume of outstanding senior loans due to mature; a situation which could lead to a substantial funding gap in the coming years.

CBRE estimates that there is US$257 billion of outstanding senior commercial real estate debt in Asia Pacific, leading to a projected funding gap of US$8.4 billion between 2024-2026.

CBRE expects a funding gap to arise in markets where there is still some degree of capital value decline expected over the next three years. By total volume, Australia will have the biggest funding gap (US$4.6 bln) between 2024-26, followed by mainland China (US$2.9 bln).

The gap will be highly concentrated in the office sector, with CBRE expecting some further repricing over the remainder of 2024.

This report explores the commercial real estate debt market in Asia Pacific and the factors underpinning the debt funding gap in the region, including the markets and sectors that are likely to face the biggest gap, and implications for investors.

This report was originally published in https://www.cbre.com/insights/reports/the-debt-funding-gap-for-asia-pacific-real-estate/

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The Real Estate Sentiment Index is developed jointly by Knight Frank India and the National Real Estate Development Council (NAREDCO). The objective is to capture the perceptions and expectations of industry players to gauge the sentiment of the real estate market.

The Sentiment Index Q1 2024 highlights a decadal high, indicating heightened market confidence in real estate's supply side, fueled by India's strong economic landscape.

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CBRE’s Asia Pacific view on the Global Tech Talent Guidebook explores:

  • The appeal of Asia Pacific for hiring tech talent;
  • Key considerations for companies seeking to identify markets in Asia Pacific for tech talent; and
  • Approaches to talent attraction and location that companies are adopting in Asia Pacific and how this is shaping their real estate strategies.

This report was originally published in https://www.cbre.com/insights/viewpoints/global-tech-talent-guidebook-2024-asia-pacific-view

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Singapore is one of the few APAC markets with a full ‘end-to-end’ life sciences value chain that comprises manufacturing, R&D, sales & logistics. Bolstered by supportive government policies, biomedical manufacturing has been the fastest growing among various manufacturing sectors. Strong venture capital funding and a vibrant life sciences startup ecosystem has also accelerated R&D, which has led to stronger demand for labs and expansion of manufacturing production capacity.

To date, Singapore has cultivated life sciences growth through a network of vibrant and strategically located clusters, such as Biopolis, Singapore Science Park, Tuas Biomedical Park and Kallang, giving occupiers a wide variety of options.

Although life sciences properties ranked top among preferred alternative assets for investment, such investible stock remains limited in Singapore. This paper highlights various key strategies in which investors can access the growth of this sector.

This report was originally published in https://www.cbre.com.sg/insights/reports/life-sciences-real-estate-an-emerging-asset-class-in-singapore

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Fractional ownership is a co-ownership framework wherein the retail investor can invest in smaller fractions of the property with relatively smaller amounts.

With Securities and Exchange Board of India (SEBI) formulating detailed guidelines for Small and Medium REITs (SM-REITs), a large number of erstwhile unregistered Fractional Ownership Platforms (FOPs) for real estate assets are expected to get listed as SM REITs. This will effectively have the potential to regularize underlying real estate assets to the tune of over INR 40 billion in the near to midterm.

Key highlights of the report include:

  • In the office market, strata sale form of fractional ownership constitute 28% of total Grade A stock with over 200 mn sq ft of Grade A strata sale stock across the top six cities.
  • Strata sale office stock in top six cities in India will swell to 260-270 mn sq ft in next two years, with an estimated market value of around INR 4,500 bn.
  • A well-regulated market of fractional ownership will attract investors across various asset classes and diversify in alternative asset classes like industrial & warehousing, data centres, retail etc.
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