Asia Pacific real estate investment volumes expected to fall 5% to 10% in 2023

Asia Pacific real estate investment volume is expected to fall 5 percent to 10 percent in 2023, moderating further after a year-on-year decline of 25 percent in 2022. According to JLL, this forecast is due to the tumultuous economic and financing conditions weighing on sentiment.

The hotel sector, however, is expected to buck the trend with capital flows into hotels and hospitality assets expected to rise 6 percent in 2023. This is following a 10 percent to 15 percent increase in 2022 as the sector benefited from border reopening.

“Optimism driven by the idea of the pandemic coming to an end has slowly given way to caution amid concerns about inflation, interest rates and geopolitics. While the Asia Pacific region is likely to fare better due to more resilient domestic demand, it will not be left unscathed from the broader challenges. As a result, there will be increased pressure on policymakers to delicately balance support measures as uncertainty persists,” said