2023: Pivoting Towards Opportunities - Asia-Pacific Outlook (Knight Frank)

Knight Frank takes a look at some of the ‘big picture’ issues impacting owners and users of real estate in the Asia-Pacific region for the upcoming year.

Global inflation in 2022 is at its highest since 1996. As most central banks in Asia-Pacific turn the screws on monetary policies to stave off inflation, growth will inevitably slow in the coming year. As monetary authorities are compelled to keep pace with the Fed's hiking cycle in addition to walking the tightrope between growth and inflation, the region's interest rates in 2023 will approach multi-year highs. 

Despite these ongoing stressors, Asia-Pacific is set to remain the world's fastest-growing region in 2023. Even as growth momentum continues to normalise across much of the region, domestic-oriented economies such as emerging Southeast Asia and India are forecast to remain supportive of overall regional growth in the upcoming year. 

As such, Knight Frank expects to see real estate markets in the region weather a period of transition as occupiers and investors review their strategies in a rapidly evolving environment.

This report was originally published in https://apac.knightfrank.com/apac-outlook