- February 1, 2023: Vol. 15, Number 2

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Asia Pacific real estate investment volumes to fall 5 percent to 10 percent in 2023

by Jennifer Molloy

In Asia Pacific, optimism has given way to caution, as tumultuous economic and financing conditions weigh on sentiment, according to JLL, which expects the region’s real estate investment volume to decline 5 percent to 10 percent in 2023, moderating further after a year-on-year decline of 25 percent in 2022.

The hotel sector, however, is expected to buck the trend with capital flows into hotels and hospitality assets forecast to rise 6 percent in 2023. This follows a 10 percent to 15 percent increase in 2022, as the sector benefitted from border reopening.

“Optimism driven by the idea of the pandemic coming to an end has slowly given way to caution amid concerns about inflation, interest rates and geopolitics,” said Roddy Allan, chief research officer, Asia Pacific, at JLL, in a statement. “While the Asia Pacific region is likely to fare better due to more resilient domestic demand, it will not be left unscathed from the broader challenges. As a result, there w

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