APAC Office Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
APAC Office Real Estate Market Analysis
The size of Asia-Pacific office real estate market is around USD 264 billion in the current year and is anticipated to register a CAGR of greater than 10% during the forecast period.
- The COVID-19 outbreak caused business closures, which reduced the market for conventional office space. In addition to its immediate effects, the pandemic affected the prospects for office real estate since traditional offices were less in demand as work-from-home policies gained popularity. The effects of the pandemic also show a rise in pricing misalignments. As the economy picks up speed, the misalignment is probably going to get smaller. However, due to shifting cultural tastes, the industry may face structural challenges in the office real estate market.
- Both the construction of new office buildings and the demand for high-end office space has significantly increased in major cities in recent years. This trend is anticipated to continue, especially in nations with rapid economic growth and urbanization, like China, India, and Australia. As a result, investors and developers should consider the Asia Pacific office real estate market.
APAC Office Real Estate Market Trends
This section covers the major market trends shaping the Asia Pacific Office Real Estate Market according to our research experts:
Rise in Demand for Coworking Spaces
The demand for office space in the nation is driven by reasons such as flexibility, comfort, and convenience. The majority of businesses in a variety of industries, including IT, manufacturing, BFSI, startups, and even boutique businesses, are looking for office space to accommodate their employees. Additionally, a lot of businesses intend to expand to new areas, open remote or satellite offices, or both, which will add to the demand for these spaces. Today's high-end, well-organized, modern offices are outfitted with all the amenities needed to deliver an excellent working environment while taking care of the health and well-being aspects. For efficient business operations and great profits in the future, the decision-makers are investing in them.
As businesses recover from the COVID-19 impact, which had previously led to stringent containment measures, including social seclusion, remote working, and the cessation of commercial activity, they are resuming operations and adjusting to the new normal.
Increasing Demand for Data Centers Driving the Market
One of the world's fastest-growing data center regions is the Asia-Pacific. The research predicted that from 2018 to 2024, the colocation market in Asia-Pacific would expand at a compound annual growth rate of 12.2%. Global cloud providers, social media platforms, media content and video streaming, e-commerce platforms, and banking account for a large portion of the demand. There are two major types of data center marketplaces in the Asia-Pacific region: those that cater to local demand, like those in Hong Kong and Singapore, and those that cater to domestic demand, like those in Tokyo, Shanghai, and Australia. Intriguing Tier II markets include Indonesia and India, which are currently experiencing very little data center capacity despite experiencing rapid population development.
Even though there are still plenty of server CPUs available, recent supply chain issues made it more difficult to build data centers as the sector battled with ridiculously high construction material costs. As a result, it will probably take years for data center development to catch up to pre-pandemic levels, which will still make it challenging to meet current demand.
APAC Office Real Estate Industry Overview
The Asia-Pacific office real estate market has a variety of distinct players, and the market consists of both developers and consultancy firms. The market is projected to return to normalcy by this year. Businesses are preparing to meet future demands, and many are entering the market in search of new opportunities. CDL, Cushman & Wakefield, Frasers Property, Mitsubishi Estate Company, and Henderson Land Development Company are major market participants in the Asia-Pacific Office Real Estate Market. The competition amongst service providers is further heightened by the strict regulatory requirements that must be met. Businesses participate in M&A transactions to develop their product lines and expand regionally.
APAC Office Real Estate Market Leaders
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CDL
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Frasers Property
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Henderson Land Development Company
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Colliers
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Cushman & Wakefield
*Disclaimer: Major Players sorted in no particular order
APAC Office Real Estate Market News
- February 2022 - Real estate firm Hulic and Japan Excellent executed a purchase agreement to exchange trust beneficiary rights in the Shintomicho Building for JPY 3.1 billion (USD 25.4 million). Japan Excellent mostly invests in office buildings in Tokyo. Two phases will be involved in the transfer of the Trust Beneficiary Rights in the Shintomicho Building: the first phase will involve the transfer of 40% ownership for JPY 1,24 billion (USD 10.1 million), and the second phase will involve the transfer of the remaining 60% ownership for JPY 1.86 billion (USD 15.3 million).
- July 2022 - Tech giant Google leased 1.3 million sq. ft of office space in Bengaluru, India, marking one of the largest office lease transactions in the country since the pandemic began.
APAC Office Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Market Definition and Scope of the Report
1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Industry Value Chain Analysis
4.5 Technological Innovations in the Office Real Estate Market
4.6 Brief on Government Regulations and Initiatives in the Industry
4.7 Insights into Rental Yields in the Office Real Estate Segment
4.8 Insights into the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))
4.9 Insights into Office Real Estate Construction Costs
4.10 Insights into Office Real Estate Investment
4.11 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Country
5.1.1 China
5.1.2 Japan
5.1.3 India
5.1.4 Australia
5.1.5 South Korea
5.1.6 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles - Real Estate Players
6.2.1 Colliers
6.2.2 Cushman & Wakefield
6.2.3 JLL
6.2.4 CBRE
6.2.5 Newmark
6.3 Company Profiles - Developers
6.3.1 CDL
6.3.2 Frasers Property
6.3.3 Henderson Land Development Company
6.3.4 Mitsubishi Estate Company
6.3.5 New World Development
6.3.6 Tata Housing and Tata Realty & Infrastructures
6.4 Other Companies*
7. FUTURE OF THE MARKET
8. APPENDIX
APAC Office Real Estate Industry Segmentation
Office real estate is the construction of buildings for leasing and selling purposes to companies from different sectors. This report aims to provide a detailed analysis of the office real estate market. It focuses on the office real estate sector's market insights, dynamics, technological trends, and government initiatives. The Asia-Pacific Office Real Estate Market is Segmented by Geography (China, Japan, India, Australia, South Korea, and the Rest of APAC). The report offers market size and forecasts for the Asia-Pacific Office Real Estate Market in value (USD billion) for all the above segments.
| By Country | |
| China | |
| Japan | |
| India | |
| Australia | |
| South Korea | |
| Rest of Asia-Pacific |
APAC Office Real Estate Market Research FAQs
What is the current Asia Pacific Office Real Estate Market size?
The Asia Pacific Office Real Estate Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in Asia Pacific Office Real Estate Market?
CDL, Frasers Property, Henderson Land Development Company, Colliers and Cushman & Wakefield are the major companies operating in the Asia Pacific Office Real Estate Market.
What years does this Asia Pacific Office Real Estate Market cover?
The report covers the Asia Pacific Office Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Asia Pacific Office Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia Pacific Office Real Estate Industry Report
Statistics for the 2024 Asia Pacific Office Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Asia Pacific Office Real Estate analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Asia Pacific Office Real Estate Report Snapshots
