At the beginning of 2022, there was a surge in investment activity in the Asia-Pacific region with all signs indicating a recovery after COVID-19. Unfortunately, this was thwarted by inflation, higher interest rates and geopolitical conflict, and all these fears resulted in the following year.
CBRE (Global Commercial Real Estate Services) has recently identified three strategies for investing in real estate in the Asia-Pacific region for 2023, which, among other factors, take into account the approach and risk appetite. Each of them provides investors with a roadmap on how to potentially deal with what looks increasingly uncertain over the course of 12 months.
Conformist investment strategies
This concept encourages the purchase of high-quality office real estate, logistics assets and apartment buildings in selected locations. Each asset group offers a potential return, but it may be lower than other strategies associated with additional risk.
Opposite investment strategies
The strategy here offers an early disposal of logistics and apartment investments that will be in demand. Then the proceeds should go to the purchase of hotels or shopping facilities. The former will benefit from a gradual recovery in international tourism driven by unmet demand, while rents in the latter have largely bottomed out and are likely to rise.
Overall, CBRE believes that each of these real estate investment strategies in the Asia-Pacific region can be successfully implemented in 2023, despite global challenges.