Commercial Real Estate - Asia | Statista Market Forecast

The Commercial Real Estate market market in Asia is anticipated to achieve a remarkable value of US$49.45tn by the year 2024.
It is projected to experience a consistent annual growth rate (CAGR 2024-2029) of 0.90%, leading to a market volume of US$51.71tn by 2029.
In terms of global comparison, the United States is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
Despite economic challenges, China's commercial real estate market continues to thrive with a surge in office space demand.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Asia is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Asian Commercial Real Estate market are evolving, with a growing demand for modern and sustainable office spaces. Businesses are increasingly looking for office spaces that offer flexible layouts, advanced technology infrastructure, and eco-friendly features. This shift in customer preferences is driven by the need to attract and retain top talent, as well as the growing awareness of the importance of sustainability in the business environment. Trends in the Asian Commercial Real Estate market include the rise of co-working spaces and the increasing popularity of mixed-use developments. Co-working spaces provide flexible and cost-effective office solutions for startups and small businesses, while also fostering collaboration and networking opportunities. Mixed-use developments, on the other hand, combine commercial, residential, and retail spaces in a single complex, creating vibrant and integrated communities. These trends reflect the changing needs and preferences of businesses and individuals in Asia, as they seek more dynamic and multifunctional spaces. Local special circumstances in different Asian countries also influence the development of the Commercial Real Estate market. For example, in countries with limited land availability, such as Singapore and Hong Kong, there is a strong focus on vertical development and maximizing the use of limited space. This has led to the construction of high-rise office buildings and the development of innovative architectural designs. In contrast, countries with abundant land resources, such as China and India, are witnessing the emergence of large-scale commercial projects and business districts. Underlying macroeconomic factors play a crucial role in shaping the Commercial Real Estate market in Asia. Rapid urbanization, population growth, and economic development are driving the demand for commercial spaces, particularly in emerging markets. Additionally, favorable government policies and incentives attract foreign investments and stimulate the growth of the market. The increasing integration of Asian economies and the rise of digital technologies also contribute to the expansion of the Commercial Real Estate market, as businesses seek to establish a presence in key regional hubs. In conclusion, the Commercial Real Estate market in Asia is experiencing significant growth and development, driven by evolving customer preferences, emerging market trends, local special circumstances, and underlying macroeconomic factors. This dynamic and diverse market offers opportunities for investors and developers to capitalize on the changing needs and demands of businesses and individuals in the region.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.