Thought Leadership

The Inclusive Cities Barometer evaluates the inclusiveness of 44 EMEA cities and 35 APAC cities, based on just under 9,000 data points, 110 metrics across 4 dimensions and 12 subdimensions.

The cities represented in the Barometer are at varying stages of their journey towards more inclusive and vibrant urban environments. Instead of ranking cities by performance, our Barometer measures their progress relative to these starting points, highlighting exemplary successes and providing actionable roadmap for improvement.

Through the Inclusive Cities Barometer, we aim to guide and inspire real estate industry stakeholders towards creating more inclusive and socially sustainable urban environments. Access the hub to find out:

• What is urban inclusion and how we can quantify it
• How your city is performing
• The pathways to inclusive cities
• The role of real estate in driving social value in the built environment
• How to drive social value across the real estate lifecycle

CBRE’s latest leasing market sentiment index reveals that leasing sentiment in most major Asia Pacific markets cooled but stayed in positive territory:

• The lower level of tenant enquiries and site visits was mainly contributed by the mainland China office sector. Other markets, particularly India and Japan, continue to record robust enquiries from the retail sector.
• While expansionary retail demand is supporting market activity, office space demand has softened since the previous survey. Demand for flexible office space weakened, especially in Australia and Southeast Asian markets.
• Following the trend witnessed in the previous quarter, half of respondents anticipate rents and incentives to remain unchanged. Respondents in Japan held the most positive views regarding the office and retail rental outlook, while those in Greater China expected further declines in office rents.
• Mainland China and Hong Kong SAR remain laggards in leasing sentiment, with around 40% of respondents in the former currently engaged in “stay vs go” analysis or renewal exercises, indicating low intentions to expand.

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/

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.