Investment in the alternatives sectors in Asia Pacific provides more direct access to the compelling demographics and demand drivers associated with the Asian population, while enhancing returns and diversification for investors, according to JLL’s The Rise of Alternative Real Estate in Asia Pacific report.
The table below highlights the five key demand drivers of the alternatives landscape and indicates the correlated key sectors. These demand drivers differ from traditional real estate asset classes demand drivers.
Most of the factors supporting the alternatives subsectors are broader, longer-term trends with much less volatility and uncertainty surrounding the medium- to long-term outlook.
By comparison, traditional asset class demand drivers such as white collar employment (office) and retail turnover (retail) tend to be more volatile with much less certainty around the outlook.
The demographics and general urbanization trends tend to be far more favorable from an overall growth perspective.
|
Age demographics |
Urbanization |
Consumer markets |
Rising wealth/Economic development |
Technology |
| Aged care |
✓ |
|
|
✓ |
✓ |
| Student housing |
✓ |
✓ |
✓ |
✓ |
|
| Education |
✓ |
✓ |
✓ |
|
|
| Data centers |
|
✓ |
✓ |
✓ |
✓ |
| Self-storage |
|
✓ |
✓ |
|
|
| Renewables |
|
|
|
✓ |
✓ |
Despite the strong investment case behind alternatives, there remain a number of barriers to entry or hurdles to investment. Some sectors are highly regulated by governments
(e.g., aged care and data centers) in certain markets.
To read the full report, click here.
