GLOBAL real estate management company Colliers declared that the stabilization of global real estate market will take hold by mid-2023 as persistent headwinds continue hounding the market.
“Despite the volatility of geopolitical tensions, economic shocks and uneven monetary policy over the past year, but this has not been universal. Investors can therefore expect significant differences in how the reset plays out across sectors and markets in 2023,” the firm noted.
In the firm’s 2023 outlook report, Asia Pacific is the region most optimistic about economic growth globally. Over half of Asia Pacific investors (53 percent) expect positive impact as a result of economic growth within its own region, versus 41 percent in EMEA (Europe, Middle East and Africa) and 38 percent in the Americas. Similarly, 43 percent of Asia Pacific respondents expect positive impact as a result of global economic growth, above EMEA, 38 percent, and the Americas, 28 percent.
“It is expected that the Asia-Pacific region will outperform all other markets in 2023. The next 12 months will still be tough, especially for core markets such as Australia, Hong Kong, Korea and Singapore,” said John Howald, Colliers executive director and head of International Capital, Asia Pacific.
Meanwhile, current inflation and interest rates are fueling an increase in operational and construction costs already exacerbated by supply chain issues and energy price increases.
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According to the report, Asia Pacific investors cited interest rates (88 percent), increased construction costs (87 percent) and higher asset operation costs (77 percent) as the top