The Commercial Real Estate market in ASEAN is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to the positive trajectory of the market.
Customer preferences: Customers in the ASEAN region are increasingly seeking high-quality and modern commercial real estate options. They are looking for properties that offer state-of-the-art facilities, sustainability features, and convenient locations. Additionally, there is a growing demand for flexible office spaces and co-working environments, as more businesses embrace remote work and flexible working arrangements.
Trends in the market: One of the key trends in the ASEAN commercial real estate market is the rise of mixed-use developments. These developments combine residential, commercial, and retail spaces in a single complex, creating vibrant and integrated communities. This trend is driven by the desire for convenience and accessibility, as well as the increasing focus on work-life balance. Another trend is the growing interest in sustainable and green buildings. Customers are increasingly conscious of environmental issues and are seeking properties that are energy-efficient, use renewable materials, and have low carbon footprints. Developers are responding to this demand by incorporating sustainable features into their projects, such as solar panels, green roofs, and rainwater harvesting systems.
Local special circumstances: Each country in the ASEAN region has its own unique set of circumstances that influence the commercial real estate market. For example, in Singapore, limited land availability and strict zoning regulations have led to a focus on vertical development and the construction of high-rise buildings. In contrast, in countries like Indonesia and Vietnam, there is ample land available for development, leading to the construction of sprawling commercial complexes.
Underlying macroeconomic factors: The strong economic growth in the ASEAN region is a key driver of the commercial real estate market. As economies expand, businesses are expanding their operations and requiring more office space. Additionally, the growth of the middle class is driving demand for retail spaces and entertainment venues. The increasing urbanization in the region is also contributing to the demand for commercial real estate, as more people move to cities in search of better job opportunities and a higher standard of living. In conclusion, the Commercial Real Estate market in ASEAN is experiencing growth and development due to customer preferences for high-quality and modern properties, trends such as mixed-use developments and sustainable buildings, local special circumstances that vary by country, and underlying macroeconomic factors such as strong economic growth and urbanization.
Data coverage:
Figures are based on value of commercial real estate.Modeling approach / Market size:
Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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