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APAC real estate on the rebound: 2024 outlook looks bright in the second half amid strengthening leasing demand and investment sentiment
- This year around 70 million square feet of new Grade A office space will come on stream in Asia Pacific, causing higher vacancy rates in most markets; Leasing demand expected to strengthen amid resilience of regional economic growth, led by the tech sector
- Investment activity expected to increase in second half, supported by anticipated re-pricing and interest rate cuts; Full-year investment volumes forecasted to recover by 5% to 10%
Paid Post:CBRE
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Asia Pacific real estate to bounce back after challenging period
After enduring a challenging 2023 marked by high interest rates, a weaker than expected recovery in mainland China, and geopolitical tensions that weighed on leasing and investment activity, the Asia Pacific real estate market is poised for a brighter second half in 2024.
CBRE's 2024 Asia Pacific Real Estate Market Outlook encapsulates this brighter forecast in the theme "A Tale of Two Halves: Headwinds Followed by Recovery", signalling a shift towards recovery as the year progresses.
Office market remains in occupiers’ favour amid abundance of new supply
In the office sector, leasing demand in Asia Pacific is expected to improve, although many companies are seeking to renew their leases or relocate on a similar budget. Expansionary demand is expected to be strongest in the tech sector – led by software and services – due to their strong revenue growth.
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