The Asia REIT market has outperformed U.S. and European counterparts despite overall declines in stock prices and market values
Cushman & Wakefield’s 2022-2023 Asia REIT Market Insight report investigates the growing Real Estate Investment Trust market in Asia, examining the primary drivers and state of play in key markets including Japan, Singapore, Hong Kong SAR, mainland China and India.
Overall, the Asia REIT market has experienced declines in stock prices and overall market values in 2022, predominantly due to the influence of the U.S. interest rate hikes. Despite this, the Asia REIT market has still performed better than its U.S. and European counterparts.
- At the close of 2022 the combined value of the Asia REIT market was at US$263.8 billion, down 14.7% y-o-y. The mainland China REIT market value surged 80% on the back of new product offerings, but the remaining Asia markets all experienced declines in market value.
- Industrial/logistics, healthcare, and data center assets have been favored by investors as new growth drivers in recent years.
- A total of 17 new products were introduced into the China REIT market in the period from March 2022 to June 2023.
- REITs have also proven popular with investors in India. Consequently, we estimate that more than 20% of Grade A office stock in India will be held by REITs by the end of 2024.