Prior to the onset of the Global Financial Crisis (GFC) in 2008, Asian real estate emerged as a popular asset class among European, North American and Middle Eastern investors, lured by the Asian growth story and property market upswing.
Direct real estate investment in Asia by international investors totalled US$21 billion in 2007, but slumped to US$1.3 billion just two years later as many western investors disposed of assets to repatriate capital to their home markets.
In contrast, Asian outbound investment multiplied more than ten-fold from US$4.3 billion in 2009 to US$47 billion in 2015. Although purchases by international investors in Asia have recovered gradually, they remain well below pre-GFC levels.
This Major Report by CBRE Asia Pacific Research explains why Asian outbound investment has increased so rapidly in recent years and identifies the reasons why inbound investment has yet to return to pre-GFC levels. The report also discusses the cyclical and structural changes driving inbound and outbound investment and identifies appropriate strategies for inbound and outbound investors.