2024 Asia Pacific Real Estate Market Outlook (CBRE) 31 January 2024
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
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