An abrupt, pandemic-induced economic downturn, travel restrictions and uncertainty about the pandemic’s duration sharply curtailed Asia Pacific real estate investment activity for much of 2020.
However, pent-up demand and a substantial volume of dry powder is set to translate to strong buying momentum in 2021, with CBRE’s 2021 Asia Pacific Investor Intentions Survey finding that 60% of investors intend to purchase more real estate this year, the highest level since 2016.
The survey, which polled more than 490 Asia Pacific-based investors in November and December 2020, found most investor types are exhibiting a stronger appetite for real estate investment compared with last year. Cross-border activity is set to be a major focus, with more than 70% of respondents intending to purchase overseas assets in 2021.
Other headlines include Tokyo retaining its position as the most preferred city for cross-border investment; logistics being named as the most popular sector for investment for the first time; and investors displaying a strong preference for core and opportunistic/distressed strategies.