Despite ongoing challenges, 2021 saw Asia Pacific generally recover from the pandemic-induced recession. CBRE’s 2022 outlook for the region is positive, with steady economic expansion expected throughout the year, led by outsized growth in India and mainland China.
CBRE’s 2022 Asia Pacific Real Estate Market Outlook, which features “Harnessing Growth, Navigating Uncertainty” as a central theme, explores how we expect the recovery in Asia Pacific’s economy and commercial real estate market to play out in 2022, despite sustained pandemic-related headwinds.
We foresee that a rebound in leasing demand will bring an end to the downward rental cycle in the office and retail sectors, with the logistics sector also expected to enjoy another strong year of growth.
CBRE expects 2022 to feature faster decision-making, flight-to-quality relocation and workplace reconfigurations as companies gain confidence in the return to the office and the adoption of hybrid working.
Logistics space demand will continue to be driven by expansion by e-commerce and omnichannel distribution operators, while robust growth in the grocery, food manufacturing and delivery sectors is expected to fuel competition for cold storage space.
In addition to robust expansionary demand, we anticipate a rise in flight to quality requirements as more occupiers seek modern logistics facilities to enhance operational efficiency and install automation and other logistics technology.
Strong liquidity will fuel the investment market, underpinning a projected 5% - 10% year-on-year increase in Asia Pacific transaction volume, to what is expected to be a record high.
Overall, the outlook is bright for the Asia Pacific real estate market in 2022, with significant growth opportunities across sectors.
We hope you find this report useful and insightful and wish you good health and success in 2022.
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