Investing in Asian real estate holds great promise for non-Asian institutional investors. But while there are great rewards, the risks are also great. However, many have overcome their fears of investing in the region, and allocations to Asian real estate by European and North American investors have been going up.

The past decade saw property investment go global, as tax-exempt investors gained comfort with investments outside their own borders.

“Over the recent years, there has been a surge of interest from both domestic and foreign investors to invest in the Asian real estate markets,” says Bastian Wolff, assistant vice president, private real estate, with Partners Group. He notes that, as allocations to the real estate sector increased in general, investors simultaneously allocated more capital to available investment opportunities in the Asia Pac