Publications

- July 1, 2022: Vol. 14, Number 7

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Supply chained: Institutional capital seeks real estate in Asia’s growing regional economy despite the pandemic, higher interest rates, war in Europe and supply snags

by Benjamin Cole

Institutional property investors in any year must think long term, as the acquisition, development and disposition of large-scale real estate assets and portfolios is not the day-traders’ game. No matter how shrill the headlines, the institutional real estate player often can do little in troubled times but hunker down — or maybe even hunt for emergent opportunities.

In 2021, property investors weighed the COVID-19 pandemic, and attendant government travel and business restrictions that had eviscerated exposed service industries, such as lodging and retail. Supply chains snagged, aggravating inflationary pressures. But interest rates remained near historic lows, and capital was abundant. Property is typically a safe refuge, and Asia Pacific real estate deals and values rose.

Asia Pacific’s commercial real estate market attracted US$177 billion in direct investments in 2021, with capital deployment volumes rising 26 percent year-over-year and reaching pre-pandemic

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