2020 Capital Markets Outlook

Investment in Asia Pacific real estate is set for another strong year in 2020. Foreign investments into Asia Pacific are at a decade-high, making up 35 per cent of total volumes, mostly driven by private equity funds and large-scale transactions.

“Real estate in Asia Pacific has gained favour in the last year as investors continue to seek high yields and stability amid a climate of geopolitical uncertainty and slowing economic growth. Over the next two years, we expect global real estate transaction volumes to stay elevated and Asia Pacific to outperform Europe and the Americas with an outsized portion of global investor interest.”

Stuart Crow, CEO Capital Markets Asia Pacific, JLL

Read our 2020 Outlook Report to discover the key trends that will shape investment across the region. To access opportunity in an increasingly competitive and complex market, investors will need to get tactical.

Key predictions include:

1. Logistics will continue to shine: We expect strongest investor interest in the logistics sector next year. As investor appetite picks up for logistics, the market becomes more tightly-held. As a result, investors must become more creative in order to access quality assets.

2. REITs are next to watch: REITs are likely to continue their strong trading performance and be highly competitive buyers of real estate assets. Size matters and we can expect to see more consolidation in this sector going into 2020.

3. Sustainability initiatives present investment opportunities. The next generation of buildings is set to become more ‘green’, with sustainable technologies to save on operating costs as well as innovative design to attract more occupiers and tenants.

4. Innovative cities will dominate office markets: Like real estate investors, corporate occupiers are attracted to cities locations with sophisticated innovation ecosystems. These cities sustain highly skilled workforces and are best placed to succeed in the global marketplace.

5. Flex space boom continues: Flexible space in Asia Pacific continues to attract the attention of investors and occupiers alike as the sector maintains its strong growth trajectory. Landlords and developers are likely to maintain their partnerships with coworking operators or serviced offices, and some will create their own flex space offerings to keep up with tenants’ changing needs.

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