2018 hasn’t been around long, but the Asia Pacific real estate market is already showing strength, with the region inspiring confidence from international investors from across the globe. The rising popularity of co-working, data centres and self-storage, among other alternatives have lead to people looking for co-working in Bangkok, cheap storage in Campbell town, and other new alternative services, and real estate investors are looking to take advantage.
One such confident investor is the Germany-based financial services conglomerate Allianz SE, who recently announced that its property subsidiary; Allianz Real Estate, has plans to increase investments in the Asia Pacific. The revelation was a noteworthy display, as Allianz revealed that is has plans to double investments in the region over a three year timespan.
Whilst the entire region looks to have a strong 2018, investors are paying attention to India, which looks to bounce back as an investor-friendly location. The country has a strong long-term financial foundations, and good economic growth has allowed it to grow back in spite of the disruptions caused by legislative changes such as the implementation of the new Goods & Services Tax, and demonetisation.
The rise of co-working, self-storage and data centres, collectively known as the alternatives sector, are expected to perform outstandingly in 2018, just like the preceding year.
For those looking for cheap storage in Campbelltown or anywhere in Australia or the Asia Pacific region, the self-storage industry is worth watching. The real estate class of self-storage facilities, give higher yields on average compared to the more traditional real estate options, with an average yield in the APAC region sitting at about 5%.
However, China’s increased regulation of the financial markets in the region and across the world might put a dampen on real estate developments.
In terms of real estate, technology is expected to become more important, with developments such as digitization of services, and automation are expected to heavily impact strategy, and team organization.
Another in the alternatives sector looking to make waves is co-working, which has been proven as of late when it comes to improving productivity within the corporate environment. The idea, once seen as a mere fad, is altering how offices operate in the region.