Real Estate - Industry - Asia Pacific Market, Share and Trends 2023-2028

Summary of Real Estate

Asia Pacific’s real estate sector has seen tremendous growth in private equity investment over the past decade and is led by China which accounts for over 50% of regional transaction volumes. Australia and India also see strong flows while emerging markets like: Vietnam, Philippines and Indonesia are gaining interest.

Based on our estimates, we can say that the Asia-Pacific’s real estate industry is forecasted to be a $3421.3 billion industry in 2029 from $2051.25 billion in 2023 with a CAGR of 7.21 %.

The logistics and multifamily sectors have been growing rapidly, while office and retail assets rebound post-pandemic across APAC’s largest cities like: Shanghai, Singapore, Sydney and Mumbai. However— Chinese commercial real estate is under pressure currently from a slowing economy and withdrawals of distressed developers like Evergrande from global capital markets.

From a funding perspective, there is an interest from US and European PE firms are partnering with local developers and operators to enter Asia Pacific real estate. APAC’s own PE industry is also maturing with several large homegrown real estate fund managers across Greater China, Korea and Southeast Asia. Overall— the region remains attractive to global asset allocators given its higher yields and massive urbanization potential.

Recent Trends and Insights

Funding into industrial and logistics facilities has tripled over the past five years, led by e-commerce linked demand across China, Australia, India and Southeast Asia. Developers are racing to build apartments for rent to capitalize on urbanization and rising middle class household formation across cities like Bangalore, Shenzhen and Manila.

The struggling property sector is creating opportunities for opportunistic investors to acquire high quality assets from struggling Chinese developers at discounted prices.

Green building regulations and ESG investing policies are driving more adoption of sustainability features like renewable energy, EV charging and energy efficiency across Australia, Japan, Singapore and New Zealand.

Markets like – Vietnam, Thailand, Philippines and Indonesia are gaining interest given their much lower asset valuations and high upside potential from urbanization and infrastructure development.

Product Insights

Core-Plus is known to provide modest capital appreciation upside through light asset repositioning and operational improvements, while still focused on stable assets. Target assets needing intensive enhancement like redevelopment, renovation or retenanting in order to unlock capital growth and higher rents over time.

Pursue high-return real estate projects with major development risks around land acquisition, zoning approvals, construction financing and lease-up periods. Specialized funds focused purely on acquiring, developing or enhancing warehouse, distribution and manufacturing facilities across APAC.

Distressed asset opportunities are growing given developer troubles. Overseas investors are cautious on policy risks. These trends are typically witnessed in China.

Build or acquire mission-critical, carrier-neutral data centers across key APAC metro areas to serve hyperscale and enterprise cloud demand. Developers targeting rental apartments, dormitories, single-family housing and other residential assets for lease across fast-growing APAC cities.

Key Companies

Some major players within this vast domain of industry are

• CDL (City Developments Limited)
• Frasers Property Limited
• Henderson Land Development Company Limited
• Colliers International Group Inc.
• Cushman & Wakefield
• JLL (Jones Lang LaSalle
• CBRE Group, Inc.
• Newmark Group, Inc.
• Mitsubishi Estate Co., Ltd.
• Tata Housing Development Company Limited

Regional Analysis

China dominates APAC real estate private equity with over $800 billion in dry powder, but Australia and India are also seeing record investment activity while Southeast Asia emerges. Shanghai, Beijing, Shenzhen and Guangzhou top the list, led by offices and industrial while retail and residential slowdown.

Sydney and Melbourne remain core focuses for asset allocators from North America and Europe. Logistics, multifamily and healthcare assets are growing in demand. ESG adoption is also a priority across funds.

Mumbai and Bangalore lead, with Delhi/NCR close behind. Logistics, business park and residential developments are expanding to serve growing multinational and technology occupier demand.

An established but slower-growth market, Japan real estate investing is focused on Tokyo and Osaka. Logistics, data centers and multifamily rental housing attract the most private capital currently.

Markets like – Singapore, Vietnam, Malaysia and Philippines offer higher yields and development upside from still-early growth stages. Logistics and residential lead, along with hospitality and mixed-use projects.

Market Segmentation

By Type:

• Residential
• Commercial
• Office
• Retail
• Industrial
• Other

By End User:

• Residential
• Office
• Retail
• Industrial
• Other

By Enterprise Size:

• Land
• Buildings

By Country:

• China
• India
• Japan
• Indonesia
• South Korea
• Australia

Our Methodology

We have offered a well-founded review of Asia-Pacific’s regional real estate market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.