DWS releases Asia Pacific real estate strategic outlook

Regional economic activity accelerated in the first half of 2021, evidenced by improved manufacturing PMI, higher export levels and a recovery in retail consumption across the Asia Pacific region, reported DWS.

Following a drop in investment activity after the peak of the COVID-19 pandemic in the first half of 2020, quarterly real estate transaction volumes in the region culminated to a record high in the fourth quarter of 2020, even though the rental market saw corrections. Strong capital flows combined with attractive borrowing costs contributed to tight yields, and to limited cases of distressed sale opportunities.

Over the next five years, DWS believes logistics will remain the best-performing sector in Asia Pacific, followed by the office and residential sectors. Given the recovery and pricing, investors may increasingly consider active management themes in order to achieve required returns across most sectors and markets.

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