In Beijing, economic uncertainty and oversupply continued to present headwinds across commercial sectors, with the vacancy overhang dragging down rental growth.
Insight
07 April 2025
Beijing commercial real estate market outlook
Amid a challenging macroeconomic environment, the latest data with respect to demand and rents shows that the downward trend of Beijing’s commercial real estate sector accelerated in 2024, and a market recovery could be delayed.
Source: JLL Research, 4Q24
Beijing welcomes the highest-ever annual total of new retail supply
The slow retail market recovery witnessed in the first half of 2024 remained fragile in the second half. At the same time, new supply of prime retail space reached a record 1.62 million sqm in 2024, intensifying competition in the retail market. In such circumstances, most landlords changed their strategy, as new projects were released into the market first and then gradually filled the vacant spaces. In 2024, the average pre-commitment rate for new additions was only 72%, yet in previous years, new project openings would definitely be postponed when the pre-leasing rate was below 90%. Looking forward, there is a sense of optimism as most new projects to be launched this year should be able to gradually increase their occupancy rates to around 90% within one year of opening, driven by F&B brands.