for expanding presence in the region(Source: Emerging Trends in Real Estate 2025 survey)
The Emerging Trends in Real Estate Global Outlook for 2025 has been released by PwC and the Urban Land Institute (ULI), highlighting the concerns of property investors in the Asia Pacific (APAC) region. The report, published on March 12th, revealed that low yields and sluggish transaction volumes are the top concerns of investors in APAC.
The report gathers data from global asset managers, including Blackstone from the US, Savills Investment Management from the UK, and CBRE Investment Management. Over 70% of respondents to the survey mentioned low yields, high interest rates, and geopolitical tensions as their top three concerns.
The report also notes that, despite these concerns, APAC continues to be an attractive region for property investors due to its population growth and other demographic factors, as well as divergent monetary policies such as Japan’s decision to increase short-term interest rates.
In 2024, real estate transactions in APAC increased by 13% year-on-year to $173.5 billion, surpassing the growth rates in other regions such as Europe, the Middle East, and Africa (EMEA) at 12% and America at 11%.
However, as Europe and North America are set to initiate a new capital markets cycle with further improvements in transaction volumes, APAC is expected to experience a slow pace of growth in transactions. Last year, liquidity in APAC was affected by a decline in transaction volumes, with China seeing a 25% decrease and Hong Kong SAR experiencing a 1% decrease in transaction volumes.
Meanwhile, in Europe, investors are grappling with different concerns. The top three concerns among asset managers in this region were international political instability (85%), escalating wars (83%), and Europe’s economic growth (77%).
Data from MSCI, a leading US-based research and data analytics company, also show that the commercial property prices in the US stabilized last year, with a decrease of just 0.7% at the end of the year. As a result, investors may shift their focus to these regions in the upcoming months.
The report also reveals that data center assets have scored the highest for investment and development prospects in all three regions for 2025. According to New York-based research firm Green Street, the global demand for data centers reached a record high last year, with asking rents growing at double-digit rates. Additionally, MSCI’s latest research predicts that 2024 will be a standout year for this asset class, with the acquisition of existing data centers through single property and portfolio deals increasing by more than 60% in the US.
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Investing in real estate in Singapore requires careful consideration of the location, as it plays a vital role in the value of the property. This is particularly true when it comes to condos. Condos located in prime areas or near important amenities such as schools, shopping malls, and public transportation hubs tend to experience higher appreciation in value. Some examples of highly sought-after locations in Singapore include Orchard Road, Marina Bay, and the Central Business District (CBD), where property values have consistently shown growth over time. Additionally, the presence of top-notch schools and educational institutions in these areas make condos even more desirable for families, further increasing their investment potential. For those interested in investing in condos in Singapore, it is crucial to carefully consider the location as it can greatly impact the value and potential return on investment. To learn more about available Condos in Singapore, please visit thebellegame.com.
In September of last year, Blackstone and the Canada Pension Plan Investment Board (CPP) acquired data center firm AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board for over $16 billion, making it the largest real estate deal in APAC and globally in 2024.