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Commercial Real Estate - Southeast Asia

Southeast Asia
  • The Commercial Real Estate market market in Southeast Asia is projected to reach a value of US$3.75tn by 2024.
  • It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.11%, leading to a market volume of US$3.97tn by 2029.
  • In comparison to other countries worldwide, the United States is anticipated to generate the highest value in Real Estate, with an estimated value of US$25.3tn by 2024.
  • In Singapore's commercial real estate market, there is a growing trend of companies opting for flexible office spaces due to their cost-effectiveness and agility.

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.

In-Scope

  • Office buildings
  • Retail spaces
  • Warehouses
  • Industrial properties

Out-Of-Scope

  • Residential real estate
  • Publicly owned buildings used by the local government
  • Buildings used for public health care services
Commercial Real Estate: market data & analysis  - Cover

Market Insights report

Commercial Real Estate: market data & analysis

Study Details

    Value

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Commercial Real Estate market in Southeast Asia is experiencing significant growth and development.

    Customer preferences:
    Customers in Southeast Asia are increasingly looking for modern and well-designed commercial spaces. They prefer locations that are easily accessible and offer a range of amenities such as parking facilities, restaurants, and retail outlets. Additionally, there is a growing demand for flexible office spaces and co-working environments, as businesses seek more agile and cost-effective solutions.

    Trends in the market:
    One of the key trends in the Commercial Real Estate market in Southeast Asia is the rise of mixed-use developments. These projects combine commercial, residential, and retail spaces in a single complex, creating vibrant and integrated communities. This trend is driven by the desire for convenience and a holistic lifestyle, as people are increasingly seeking live-work-play environments. Another trend in the market is the increasing focus on sustainability and green buildings. Developers are incorporating eco-friendly features into their projects, such as energy-efficient systems, green spaces, and sustainable materials. This is in response to growing environmental awareness and the desire to reduce carbon footprints.

    Local special circumstances:
    Each country in Southeast Asia has its own unique set of circumstances that impact the Commercial Real Estate market. For example, in Singapore, limited land availability drives up property prices and creates a competitive market. In Indonesia, the government's efforts to attract foreign investment have led to the development of commercial hubs in Jakarta and other major cities. In Thailand, the growth of the tourism industry has fueled demand for commercial spaces in popular tourist destinations.

    Underlying macroeconomic factors:
    The growth and development of the Commercial Real Estate market in Southeast Asia can be attributed to several underlying macroeconomic factors. The region has experienced rapid economic growth in recent years, leading to increased business activity and demand for commercial spaces. Additionally, favorable government policies and incentives have attracted foreign investment, further driving the market. Furthermore, the rise of the middle class in Southeast Asia has created a strong consumer base and increased demand for retail and entertainment spaces. This has contributed to the development of shopping malls and entertainment complexes across the region. In conclusion, the Commercial Real Estate market in Southeast Asia is experiencing significant growth and development due to customer preferences for modern and well-designed spaces, trends such as mixed-use developments and sustainability, local special circumstances in each country, and underlying macroeconomic factors such as rapid economic growth and the rise of the middle class.

    Methodology

    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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    Commercial Real Estate: market data & analysis  - BackgroundCommercial Real Estate: market data & analysis  - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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    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.
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