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Research - JANUARY 31, 2023

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Asia Pacific real estate investments declined by 27 percent in 2022

by Andrea Zander

Commercial real estate investment in Asia Pacific declined by 27 percent year-on-year as a tightening interest rate cycle and global macroeconomic uncertainties influenced decision-making. According to JLL, direct investment in Asia Pacific commercial real estate totalled $129 billion for the full-year 2022, in line with the firm’s projections.

The fourth quarter saw a 41 percent year-on-year decline in activity across Asia Pacific. However, the $30.7 billion in capital deployed between October and December represented a quarter-on-quarter increase of 12 percent, reinforcing JLL’s conviction that the slowdown is likely to moderate in 2023.

“Investors reset short-term deployment strategies in 2022 but remain committed to the longer-term prospects of the Asia Pacific real estate market. Price discovery will continue to be a major theme for investors in 2023 and is poised to influence deployment strategies for the first half of the year as bid-ask spreads tighten. E

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