CBRE’s Mid-Year Asia Pacific Real Estate Outlook: Rising inflation, interest rates to moderate growth

CBRE foresees Asia Pacific’s commercial real estate markets moderating in the second half of the year as rising inflationary pressure and interest-rate increases provide the major challenge to economic growth in the region, according to the company’s 2022 Asia Pacific Mid-Year Real Estate Market Outlook.

The lack of clarity around the full reopening of China continues to cloud the regional economic outlook. This combined with a slowdown in global economic growth, has prompted CBRE to downgrade slightly its regional gross-domestic-product forecasts for 2022.

While CBRE expects Asia Pacific to experience continued headwinds until mid-2023 as a result of the global economic slowdown, the region is likely to avoid a recession. China and Hong Kong SAR are expected to lead the region’s economic recovery, likely beginning in the first half of next year. Accommodative monetary policies in China and Japan will continue to support growth in the region.

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