The following commentary was originally published in The Business Times website
The sharp rise in global interest rates that took hold in the second half of 2022 drove a "great reset" of real estate values, with mixed impact on investors and lenders.
However, with interest rates peaking and inflation starting to ease, we are beginning to see light at the end of the tunnel. The Asia-Pacific (Apac) real estate market is set to begin its recovery in 2024, driven by stabilised capital values and resilient income returns.
The structural growth in terms of demographics, digitalisation and decarbonisation are driving secular shifts in occupier demand across real estate sectors and geographies. From the cyclical perspective, some markets in Apac current offer interesting entry prices and rental growth prospects, as the current cycle and price discovery enter a stabilisation stage.
Furthermore, the ongoing shift from the more highly regulated traditional bank-led financing and towards private market funding is creating new opportunities for debt investors.
