[APAC] The Bull is Returning to the Real Estate Market in 2021
In 2020, COVID-19 has taken the world by storm. It has taken the lives of many; it has taken the livelihood of many more. Hence it is believed that COVID-19 has "killed" more invested people than infected people. While the impacts to the economies across the globe have yet to be fully felt, many fear that once the government aids deplete, the world would go into a recession, the likes of which we have never seen before.
That said, experts believed that one particular industry would be on track to welcome the "bull". On 18 December 2020, Janice Heng of The Business Times published an article highlighting the key findings of a report (2021 Asia Pacific Real Estate Outlook) published by JLL. Real estate investment deals are expected to have double-digit growth of 15-20%. The experts are of the view that 2021 would be the start of a new cycle in real estate growth in APAC. This is fuelled by the rise in investors' interest for logistics and alternative assets. Areas heavily impacted by COVID-19 (hotel, retail and office investments) are expected to rebound as the recovery of economies start to happen.
Even though the pandemic has caused the world to embrace working from home, JLL believes that office would still be relevant, with an expected shift towards more quality space. It is estimated that 40% of APAC offices require refurbishments - this could represent a potential upside of "US$400 billion in unrealised value for investors pursuing value-add strategies".
To read the full article published by The Business Times, follow the LINK . If you are residing in Asia, what are you waiting for? Start building your Real Estate Network today!