$70 billion in capital poised for Asia Pacific real estate investment in 2025
By
Cushman & Wakefield reports that approximately $70 billion in “dry powder” is waiting to be deployed into Asia Pacific real estate markets as investors anticipate a recovery in 2025.
Gordon Marsden, Head of Capital Markets, Asia Pacific at Cushman & Wakefield, said: “Investors have been in the ‘wait and see’ phase over the last 18-24 months and there is growing anticipation that investment volumes will recover in 2025.”
The firm’s APAC Capital Markets Outlook – Midyear 2024 Update indicates this capital is likely to target debt, opportunistic and value-add assets.
Marsden noted: “Assets and sectors that can provide elevated returns, especially through resilient income streams are likely to be most favoured.”
Dr. Dominic Brown, Head of International Research at Cushman & Wakefield, highlighted the region’s economic resilience despite recent interest rate hikes.
“Although growth has decelerated, it remains positive across most of the region,” Brown said.
He added that commercial real estate investment has decreased by 40% from its peak in Q1 2022, but recent trends indicate stabilisation.
==
==
Looking ahead, Brown anticipates gradual interest rate cuts across the region, with regional growth forecast to stabilise around 4% over H2 2024 and through 2025-26.
The report also identified potential market-impacting factors including geopolitical fragmentation, debt levels, secular megatrends, and the rise of AI and technology.
Cushman & Wakefield emphasised that while significant capital reserves are ready for deployment, aligning this capital with suitable assets remains a primary challenge for investors.