Real estate outlook for APAC supported by strength of region’s domestic economies

Although the worst of the COVID-19 pandemic has passed, its effects on the global economy and real estate markets continue as legacies of supply chain disruptions and inflationary pressures interact with a fresh source of geopolitical tensions and uncertainty, according to Cuong Nguyen, head of Asia-Pacific (APAC) investment research, PGIM Real Estate, on the real estate outlook for APAC. Volatility is elevated, but recent performance in the face of a turbulent economy suggests real estate markets in Asia Pacific are well positioned to weather whatever comes next.

In the past year, inflation forecasts have been consistently revised upward although conditions are not unprecedented and do not spell disaster for property values, as rents tend to keep pace with inflation over time. With real estate yields at historical lows, constructing a real estate portfolio that can deliver consistent NOI growth will be crucial to mitigating the risks associated with a transition toward a h