The country’s leading real estate consultancy, JLL is confident that the Asia Pacific Real Estate industry will continue to grow in the second half of 2019.
In their report, by the year 2027, it is expected that the Asia Pacific Region’s urban population will exceed 400 million people.
In the next 10 years, the population of people aged 65 and above will increase by 146 million. Asia Pacific’s E-Commerce Market is projected to grow to USD 1.6 trillion.
Rapid Urbanization coupled with the strong demographics of the Asia Pacific and its demand for alternative types of real estate assets factors is thereby creating trends that are impacting the current real estate industry of the region. Innovation in smart cities is about more than technology. Cities are increasingly embracing collaboration with other cities and the technology vendor ecosystem to help drive innovation.
Best practice sharing will allow the cities in the network to set up their initiatives efficiently, share learnings, and identify new and innovative use cases. In turn will deliver a higher quality of life for citizens, a competitive economy and a sustainable environment. This ASEAN collaboration will bring many opportunities for the real estate industries of ASEAN member countries including the Philippines.
Property technology takes into account attitudes, movements and transactions which leads to the development of technologically innovative products and/or new business models for the commercial side as well as the construction side of the real estate industry, and even for buildings and cities of the future.
JLL has determined that capital allocations to real estate are rising, and to keep yields up, investors are considering varied strategies and diversifying portfolios. JLL is increasingly helping investors develop strategies in alternative real estate sectors to achieve long term growth.
The Asia Pacific Region’s increasing and aging urban population have seen a growing demand for alternative residential arrangements, including student accommodation, co-living, family nursing homes, and aged care.
With the Asia Pacific Region leading global E-Commerce to establish their data storage infrastructure as well as warehousing facilities for retail goods, the robust rate of consumption is driving increasing investor interest into data centers and logistics in the region.
Corporate demand for flexible workspaces has steadily increased in the region as the focus on building human experiences has been proven to foster innovation among employees.
Talent and technology drive corporate real estate strategies, with many of the world’s largest technology and financial companies reviewing their expansion strategies in the search for affordable but high quality and educated talents. Companies are also leveraging workspaces as a key differentiator to attract and retain top talent. As corporates start to recognize how important employer engagement is in driving productivity and business goals, workplaces that offer modern up to date technology, human-centric and personalized space offerings will stand out in the war for talents.
Foreign direct investments (FDI) approvals doubled in 2019 compared to a year ago and consumer demand accelerated to 6.3% YOY in 1Q19, up from 5.6% in 2018. JLL believes that Proptech-the convergence of real estate and technology will transform the way we live, work and play. It improves transparency, efficiency, and productivity across all facets of the real estate sector.
The future looks bright for the Asia Pacific Real Estate Industry. There are many lucrative opportunities on offer for innovative real estate stakeholders, corporations, and investors.
JLL is excited to guide its clients towards investing in the Asia Pacific Region and looks forward to being active players in the Asia Pacific real estate industry- touted as the fastest growing and most dynamic market in the world.