Executive Summary

Despite ongoing market uncertainty, the case for value-add in Asia Pacific today is supported by several factors.

• Asia Pacific real estate values have gone through a correction and, having stabilized in 2024, are set for a rebound in the coming years. Some parts of the market are set to rebound faster than others. 
• The low liquidity market environment of today can offer an attractive entry point as investors can selectively acquire assets below valuation and capture immediate upside.
• After a relatively subdued investment and building cycle, there are supply shortages, even in parts of the market with resilient demand. In addition, there is a need for capital to modernize existing stock and meet the growing sustainability requirements of institutional investors. 
• The value-add opportunity set is expanding to sectors not traditionally seen as part of the investment landscape, including operationally intensive sectors that offer higher potential returns but require more specialist expertise to execute on.