Dublin, Aug. 04, 2023 (GLOBE NEWSWIRE) -- The "Asia Pacific Office Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecast (2023-2028)" report has been added to ResearchAndMarkets.com's offering.
The Asia-Pacific office real estate market has demonstrated significant growth, reaching a substantial size of USD 264 billion in the current year. The market is anticipated to continue its upward trajectory, registering a Compound Annual Growth Rate (CAGR) of greater than 10% during the forecast period.
Key Highlights
The COVID-19 outbreak has had profound effects on the office real estate market in the Asia-Pacific region. Business closures and the implementation of work-from-home policies reduced the demand for traditional office spaces. As the economy gradually rebounds, the market is showing signs of pricing misalignments, which are expected to diminish as recovery gains momentum. However, the industry may face structural challenges in the office real estate market due to shifting cultural preferences.
A notable trend in major cities is the increased construction of new office buildings and a growing demand for high-end office spaces. This surge is particularly prominent in nations experiencing rapid economic growth and urbanization, such as China, India, and Australia. Investors and developers are advised to closely monitor the opportunities presented by the Asia-Pacific office real estate market.
Asia Pacific Office Real Estate Market Trends
Rise in Demand for Coworking Spaces
The demand for office spaces in the region is driven by factors like flexibility, comfort, and convenience. A diverse range of industries, including IT, manufacturing, BFSI, startups, and boutique businesses, seek office spaces that cater to their specific needs. Many businesses are also looking to expand into new areas or establish remote and satellite offices, further increasing demand for flexible office solutions. Modern, well-equipped offices with a focus on employee well-being are becoming increasingly popular among decision-makers who understand the importance of efficient operations and future profitability.
As businesses adapt to the new normal after the impact of COVID-19, they are resuming operations and embracing flexible office solutions to accommodate changing work dynamics.
Increasing Demand for Data Centers Driving the Market
The Asia-Pacific region is witnessing rapid growth in data center demand, making it one of the fastest-growing data center regions globally. The colocation market in the region is expected to grow at a CAGR of 12.2% from 2018 to 2024. Global cloud providers, social media platforms, media content and video streaming, e-commerce platforms, and banking are major contributors to the increased demand. The Asia-Pacific data center market is comprised of locations catering to both local and domestic demand, such as Hong Kong, Singapore, Tokyo, Shanghai, and Australia. Tier II markets like Indonesia and India show immense potential for data center growth, given their rapid population development.
While demand for data centers remains strong, supply chain disruptions and high construction material costs have posed challenges in building new facilities. This has led to a time lag in data center development, making it difficult to meet the current demand.
Asia Pacific Office Real Estate Market Competitor Analysis
The Asia-Pacific office real estate market comprises various players, including developers and consultancy firms. As the market looks toward returning to normalcy, businesses are preparing to address future demands and explore new opportunities.
Major market participants in the Asia-Pacific Office Real Estate Market include CDL, Cushman & Wakefield, Frasers Property, Mitsubishi Estate Company, and Henderson Land Development Company. The market's strict regulatory requirements further intensify the competition among service providers, driving businesses to engage in mergers and acquisitions to expand their product lines and regional presence.
A selection of companies mentioned in this report includes
- Colliers
- Cushman & Wakefield
- JLL
- CBRE
- Newmark
For more information about this report visit https://www.researchandmarkets.com/r/5h0e6n
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