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The Rise of APAC Institutional Investors

Asia Pacific Major Report | November 2015

Allocations to real estate by Asia Pacific institutional investors are still underweight at around 2%, which is far below the average among similar institutions in developed markets. However, more institutional investors from the region are now looking to invest in real estate to boost their long term investment returns, supported by the relaxation of outbound investment regulations in a number of major markets.

CBRE expects real estate investment by Asia Pacific institutional investors to increase by US$240 billion between 2015 and 2020, with activity led by Chinese groups. This calculation is based on the gradual increase of Asia Pacific institutional investors’ allocations to real estate and sustained growth in their total asset size.

Potential challenges include intense competition among investors and the shortage of assets for sale in gateway cities, along with various regulatory hurdles. Internal capability and expertise may also be an obstacle, with many Asia Pacific institutional investors still lacking specialist internal teams to manage their real estate investments, especially those assets overseas.


Contacts


Henry Chin, PH.D.
Head of Research, Asia Pacific
+852 2820 8160
Email
  Ada Choi, CFA
Senior Director, Asia Pacific
+852 2820 2871
Email
  Marc Giuffrida
Executive Director,
Global Capital Markets
Asia Pacific
+65 6229 1154
Email​​
         
Nick Crockett
Executive Director,
Capital Advisors
Asia Pacific
+65 6229 1136
Email​​
   ​​  ​​  ​​

Infographic


The Rise of Asia Pacific Institutional Investors in the Global Real Estate Market Infographic


The Rise of Asia Pacific Institutional Investors in the Global Real Estate Market