ASIA PACIFIC REAL ESTATE INVESTMENT: WHAT SHOULD YOU INVEST IN RIGHT NOW?

Real estate consulting firm JLL expects investment in the office and hotel segments will grow from 20% to 30% by 2022.

 Office and hotel property investments in APAC expects to increase by 30% in 2022 / ph: pexels 

According to JLL analysts, in most cities across Asia, the demand and occupancy rate of modern Grade A office buildings have outstanding compared to the market in previous years - The reason is that the pandemic has raised public awareness about quality, health and safety as well as sustainability.  JLL experts expect that there will be a dramatic increase in value development strategies to reuse or refurbish and renovate old offices.

Over the last five years or so, awareness of sustainability-related issues has increased, but in reality very few companies in Asia have taken action.  In 2021, JLL found that only 20% of business owners and investors had adopted net zero carbon emissions targets and committed to taking action over the next decade to achieve them in 2030.

However, this has had positive changes in the period of the end of last year and the beginning of this year when more and more investors actively changed their criteria to catch up on capital inflows towards a strategy to reduce carbon emissions, evolving government regulations and importantly changing tenant preferences.

JLL experts expect that the number of businesses operating in the Asia Pacific region through the zero-carbon target and agreeing to green environmental development terms will double by 2025.  A number of tenants and investors agree that future employees will demand cleaner, healthier and more sustainable workplaces.

Additionally, JLL also expects more investors to consider assets that can benefit from inflation, especially to protect themselves from the effects of an expected interest rate increase.

Some properties include retail stores, hotels, condominiums, housing and offices where rental prices are tied to consumer prices or inflation.  Properties with shorter lease terms are also preferred as it gives the investors the opportunity to make more profit from the increase in rental prices.

ASIA PACIFIC REAL ESTATE INVESTMENT: WHAT SHOULD YOU INVEST IN RIGHT NOW?