JLL, the professional services and investment management company specialising in real estate, projects that Asia Pacific transaction volumes will grow five per cent to reach US$135 to US$140 billion in 2018, driven by continued momentum in core markets and increased interest in developing markets.
Indian real estate will be on the hit list for more global investors in the Asia Pacific for 2018. Alternative real estate and technology are also predicted to impact the region.
Indian real estate is targeted of several high-profile investments in 2017, with Singapore’s GIC purchasing a 33 per cent stake in a unit of DLF Cyber City for US$1.4 billion.The real estate arm of global insurer Allianz also announced its partnership with India’s Sharpoorji Pallonji Group to establish a fund worth US$500 million to target India’s office market.
India will continue to be the top developing market for investors in 2018, says Dr Megan Walters, head of research, JLL Asia Pacific, “India’s Tier 1 office and retail sectors are projected to show the highest total returns in 2018. It is the year for investors to consider a strategic entry into India, given its positive long-term fundamentals and economic growth.”
Meanwhile, Asian investors will continue to invest outside the region in 2018 due to the large amounts of capital that local markets are unable to absorb. Overall, investors from Asia spent more than US$26 billion on property in the US and Europe in the first three quarters of 2017.