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ASEAN Office Real Estate Market Size (2024 - 2029)

The ASEAN Office Real Estate Market is experiencing significant growth, driven by the increasing demand for co-working spaces and the rise of start-ups in the region. The market's expansion is influenced by the shift towards hybrid workplace models, which integrate traditional office spaces with remote and flexible working options. Despite the challenges posed by the COVID-19 pandemic and the growing popularity of work-from-home arrangements, the need for office space is expected to increase, necessitating a focus on cost and portfolio optimization. The market's dynamics are evolving, with structural challenges arising from changing cultural preferences and the need to accommodate a more mobile workforce.

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Market Size of ASEAN Office Real Estate Industry

ASEAN Office Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 100 Billion
Market Size (2029) USD 110 Billion
CAGR (2024 - 2029) > 9.00 %
Market Concentration Low

Major Players

ASEAN Office Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

ASEAN Office Real Estate Market Analysis

The ASEAN Office Real Estate Market size is estimated at USD 100 billion in 2024, and is expected to reach USD 110 billion by 2029, growing at a CAGR of greater than 9% during the forecast period (2024-2029).

  • The global pandemic caused business closures, leading to a decline in the conventional office space market. In addition to its immediate effects, the prospects for office real estate were also affected as traditional offices were less in demand due to work-from-home policies gaining popularity. The effects of the pandemic also included a rise in pricing misalignments. As the economy picks up speed, the misalignment is expected to get smaller. However, due to shifting cultural tastes, the market may face structural challenges.
  • In order to create a hybrid workplace model, occupiers are likely to concentrate more on merging traditional leased spaces, remote working possibilities, and flexible spaces within real estate portfolios. The plan to decentralize the workplace and provide more locations to satisfy the demands of a more mobile workforce is anticipated to have cost and portfolio optimization as its objectives. According to industry experts, more office space will be needed in Asia-Pacific over the next 10 years than in the preceding ten, notwithstanding the challenge posed by work-from-home arrangements.
  • In Asia-Pacific, it is anticipated that 1.35 billion square feet of office space will be needed over the course of the next ten years, a 66% increase over the 800 million square feet absorbed by corporate occupiers during the previous ten years. In APAC, 55% of office construction work is already in progress. It is estimated that by the end of 2024, 120 million square feet of office space will be constructed on average.
  • The demand for commercial and office space is driven by the expansion of businesses, the growth of the service sector, and the establishment of regional headquarters by multinational corporations.

ASEAN Office Real Estate Industry Segmentation

Office real estate is the construction of buildings for leasing and selling purposes to companies from different sectors. A complete background analysis of the ASEAN office real estate market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends, market dynamics, geographical trends, and COVID-19 impact, is covered in the report.

The ASEAN office real estate market is segmented by geography (Singapore, Thailand, Vietnam, Indonesia, Malaysia, Philippines, and Rest of ASEAN). The report offers market size and forecasts in value terms (USD) for all the above segments.

By Geography
Singapore
Thailand
Vietnam
Indonesia
Malaysia
Philippines
Rest of ASEAN
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ASEAN Office Real Estate Market Size Summary

The ASEAN office real estate market is experiencing a dynamic transformation driven by the rise of start-ups and the burgeoning demand for co-working spaces. The market is poised for significant growth, with a robust expansion anticipated over the coming years. The COVID-19 pandemic initially disrupted the traditional office space demand, as remote work became prevalent, leading to a shift in cultural preferences and potential structural challenges in the market. However, as the economy recovers, the market is expected to stabilize, with a focus on hybrid workplace models that integrate traditional leased spaces, remote working options, and flexible spaces. This decentralization of the workplace aims to optimize costs and portfolios, catering to a more mobile workforce. Despite the challenges posed by remote work arrangements, the demand for office space in the Asia Pacific region is projected to increase significantly, with substantial construction activities already underway.

The ASEAN region, particularly countries like Malaysia, Indonesia, and Singapore, is witnessing a rapid expansion of co-working and flexible office spaces, outpacing global trends. This growth is fueled by the need for businesses to access a broader talent pool and the increasing digital connectivity that allows for borderless hiring. The region's vibrant tech and digital sectors, supported by favorable government policies and venture capital investments, are further propelling the demand for office real estate. Notable companies such as UOL Group Limited, City Developments Limited, and Frasers Property are actively participating in the market, which is characterized by fragmentation and a variety of development projects. As the market regains normalcy, it presents numerous opportunities for developers and property consultancy firms to capitalize on the evolving needs of businesses in the region.

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ASEAN Office Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS & DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

        1. 1.2.1.1 Increasing Demand for Co-Working Spaces

      2. 1.2.2 Market Restraints

        1. 1.2.2.1 Competitive Challenges

      3. 1.2.3 Opportunities

        1. 1.2.3.1 Growing Popularity of Flexible Working Spaces

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 1.4 Industry Value Chain Analysis

    5. 1.5 Technological Innovations in the Office Real Estate Market

    6. 1.6 Government Regulations and Initiatives in the Industry

    7. 1.7 Insights into Rental Yields in the Office Real Estate Segment

    8. 1.8 Insights into the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))

    9. 1.9 Insights into Office Real Estate Construction Costs

    10. 1.10 Insights into Office Real Estate Investment

    11. 1.11 Impact of the COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Geography

      1. 2.1.1 Singapore

      2. 2.1.2 Thailand

      3. 2.1.3 Vietnam

      4. 2.1.4 Indonesia

      5. 2.1.5 Malaysia

      6. 2.1.6 Philippines

      7. 2.1.7 Rest of ASEAN

ASEAN Office Real Estate Market Size FAQs

The ASEAN Office Real Estate Market size is expected to reach USD 100 billion in 2024 and grow at a CAGR of greater than 9% to reach USD 110 billion by 2029.

In 2024, the ASEAN Office Real Estate Market size is expected to reach USD 100 billion.

ASEAN Office Real Estate Market Report Snapshots

ASEAN Office Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)