Knight Frank’s Post

With Trump already in office and proposing multiple trade tariffs, plans to diversify manufacturing bases will become more urgent this year for industrial occupiers. For office occupiers, multiple factors are impacting decision-making, from looming sustainability deadlines to the progress of AI.   Read more about the top 25 real estate trends for 2025 from Knight Frank’s annual Asia-Pacific outlook report: https://hubs.la/Q033G9QQ0

Real estate investment in Asia-Pacific is up 10.8%, driven by a 16.1% surge in office investments. Explore the top 25 trends for 2025, from cross-border activity to resilient defensive sectors, in Knight Frank’s latest Horizon Outlook Research. #CapitalMarkets #KnightFrankAPAC #2025Trends

The Asia-Pacific region is evolving rapidly and will have a significant impact on global growth in 2025. Understanding the economic and geopolitical environment across the region is essential for any investor or occupier. Our Asia-Pacific Horizon report analyses the current landscape, explores the challenges and opportunities within the Residential and Commercial sectors, and offers guidance on how to unlock value and potential. Download it now: https://lnkd.in/ghjsHUUZ

Our Asia-Pacific Outlook “Charting new horizons: 25 trends shaping 2025” is out! Our report examines the present economic and geopolitical landscape, evaluates the challenges and opportunities within the Residential and Commercial sectors, and provides guidance on unlocking potential. Here are some of the key highlights: 👉Total cross-border volume for 2024 surged 64% to US$48.8 billion from US$29.1 billion in 2023 - we expect this volume to grow 10-15% in 2025 👉Value-add plays a key differential role - The office sector holds significant potential due to the growing divide between obsolete buildings and premium spaces 👉Asia-Pacific occupiers turn to data to drive real estate portfolio optimisation, aligning business goals with employee expectations 👉In logistics, trade tensions and normalising consumer demand are shaping strategies and occupiers will prioritise cost management and supply chain optimisation 👉The branded residences sector is also booming, with supply expected to double by 2030, fuelled by increasing High-net-worth individuals and global millionaire migration Explore the outlook report to confidently navigate the changing real estate landscape in the Asia-Pacific region and discover how to unlock its potential now: https://hubs.la/Q033G9QQ0 hashtag #KnightFrankAPAC hashtag #2025Trends hashtag #CRE hashtag #Logistics hashtag #Residential hashtag #Occupier hashtag #CapitalMarket

Don’t miss out! Our latest update sheds light on the current commercial property price trends. 🚨 Here’s what these trends mean for a solid investment strategy: • Industrial Sector Growth: With a 9.1% annual increase, industrial properties are a hotspot for potential gains. • Suburban Office Stability: A slight 0.3% increase suggests suburban offices could be a stable investment choice. • Retail Resilience: With only a 0.8% decline, the retail sector is showing resilience and could offer strategic opportunities. • CBD Office Declines: Slowing declines might signal a potential turning point, guiding future investment decisions. How do you view these market shifts? Share your thoughts in the comments below 👇

🔍 Key Highlights by Asset Class: - #Healthcare: With €3 billion invested, this sector underscores Europe's aging population and the critical need for care facilities. Low volatility performance and increasing demand highlight its growing importance. Residential: Block investment surges to €26 billion, supported b y resilient labor markets and easing borrowing rates. Regional disparities persist, but price rebounds signal market recovery in key areas. - #Hospitality: A stellar recovery driven by major events and rising tourist arrivals, with €15 billion in investments. Occupancy rates soar, boosting RevPAR and driving robust performance across categories. - #Office: ESG-compliant, centrally located offices remain investor favorites, despite market splits. Take-up levels hold steady, with strong demand for flexible, energy-efficient spaces. Well-being-focused designs are also key to standing out beyoung tenants. - #Retail: While overall volumes decline, prime locations with high foot traffic retain investor interest, supporting retail growth amid shifting consumption patterns. - #Logistics: E-commerce continues to fuel demand, with investment hitting €27 billion. Prime yields remain attractive, and vacancies stay low in core markets. 🌍 At Praemia REIM, our mission is to navigate complexity and deliver clear, actionable insights. We thank our incredible Research&Strategy team,Henry-Aurélien Natter, MRICS, Joséphine Martinet, Régis CASTOR, for their expertise in shaping this report. 👉 Download the full "Real Estate Convictions" report here in English & in French: https://lnkd.in/e2Rg4Upt

🌏 What’s happening in Asia Pacific real estate in 2024? I’ve just read the Asia Pacific Real Estate Strategic Outlook 2024, and there’s so much to unpack about where the market is heading. Here are some of the highlights that stood out to me: 1️⃣ Big opportunities in housing and logistics: • Australia’s Built-to-Rent (BTR) sector is booming, thanks to a housing shortage and high demand for rentals. Rents are expected to grow ~5% a year for the next five years. 🏘️ • Logistics properties in places like Singapore and Australia are doing great too—tight supply and the rise of e-commerce are keeping demand high. 📦 2️⃣ Office spaces are a mixed bag: • High-quality, modern buildings with ESG features are performing well, while older properties are struggling to attract tenants. 🌱 • In some cities like Seoul, office demand is strong, but others, like Sydney, still have high vacancy rates. 3️⃣ Investing smarter: • There’s a lot of focus on value-add opportunities—like upgrading older office buildings or getting into niche sectors like senior housing or student accommodation. 🏢 • I also didn’t realize how much potential there is in real estate debt, especially in markets like South Korea. 💰 4️⃣ Challenges to keep in mind: • Prices are still correcting in many places, with prime yields rising in markets like Australia and South Korea. But there’s hope they’ll stabilize by the end of the year. This report really drives home the point that being strategic and focusing on quality is key in today’s market. 💭 What do you think? Are you seeing these trends where you are? I’d love to hear your perspective. #RealEstate #AsiaPacific #InvestmentTrends #BuiltToRent #Logistics #ESG #RealEstateInvesting #MarketInsights

The Colliers Asia Pacific City Cap Rate Q3 2024 report provides valuable insights into current cap rates for office and retail markets across APAC cities. Using this city-specific data, I’ve developed a broader country-level view along with size of the market of the region’s real estate landscape: - India demonstrates compelling investment potential in commercial office, warehousing, retail space. - Significant Grade A Office inventory, both existing (~800 million sq. ft.) and upcoming - Highest cap rates in APAC, offering strong returns with Fortune 500 GCC tenants - Unique growth drivers: rapid urbanization and population expansion, unlike most APAC countries with modest or stable population trends. - Rupee stability against the dollar (other than post US elections over last 5 days!), supported by RBI’s robust forex reserves. India’s strong fundamentals and growth outlook position it as a bright spot for long-term Rent Yielding investments in APAC.

The real estate market is changing fast, and Knight Frank’s report - "Charting New Horizons: 25 Trends Shaping 2025" shows the factors that are causing this change: Southeast Asia and India are growing as strong economies, boosting growth and stability in the Asia-Pacific region. Investments across borders are increasing, with office spaces still popular among investors because they are flexible and have solid fundamentals. Sustainability is important now, with ESG-compliant properties taking the lead as companies work to meet global climate objectives. In the housing market, luxury branded residences are becoming more common, and the movement of wealthy individuals is changing the landscape. At the same time, the logistics industry is thriving, driven by the rise of e-commerce and new technologies like electric vehicles and data centers. Learn more about these changing trends in the full report: https://lnkd.in/gZRwcPch #KnightFrankResearch #RealEstateTrends #Sustainability #InvestmentOpportunities #KnightFrankPropertyHub #internationalproperty #knightfrank #knightfrankmalaysia

Industrial and Self-Storage REITs   Across various real estate sectors in Europe, Industrial and Self-Storage REITs have emerged as leaders, showcasing significant gains. These sectors have demonstrated strong performance, reflecting the increasing demand for industrial and self-storage spaces driven by factors such as e-commerce growth and the need for efficient storage solutions.   In contrast, REITs in other sectors such as Office, Retail, Residential, and Healthcare are currently trading below their base prices from November 2019. This indicates ongoing challenges and a slower recovery for these sectors amidst changing market dynamics and post-pandemic adjustments. Source: ARETE, data: LaSalle Investment Management #MarketUpdate #REITs #RealEstate #IndustrialRealEstate #SelfStorage #OfficeSpace #Retail #Residential #Healthcare #InvestmentTrends #EuropeanMarkets #MarketDynamics #EcommerceGrowth ARETE