Investment into Asia’s Retail Real Estate Remains Strong Driven by Japan and China

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JLL predicts high retail investment sales transaction volumes in 2014, driven by Japan and China due to:

  • Increasing weight of capital targeting region’s retail real estate markets in 2014
  • Limited availability of investible stock forcing investors up the risk curve into emerging markets
  • Japan and China continue to drive transaction volumes
  • Expected further increase in number of strategic partnerships

ShoppingCentre-SingaporeRetail real estate investment markets in Asia are set to remain strong in 2014, exceeding the already ‘prolific activity’ witnessed in 2013, according to the latest data from JLL. The Asia Retail Investment Outlook and Review highlights the likely imbalance of demand and supply for the rest of the year as the increasing the weight of capital targeting the region, driven by new capital raises and changing regulations, is met with a limited availability of investible stock.

The outlook comes as retail investment markets in Asia witnessed another strong year of activity in 2013 with total turnover increasing by USD 6.16 billion year-on-year to total USD 21.17 billion at year-end. While the amount of domestic and international capital targeting investment in retail real estate in the region is expected to grow during 2014, the shortage of stock will keep prices high and force investors up the risk curve and into emerging economies.

David Raven, Lead Director, Retail Investment, Asia Pacific Capital Markets at JLL commented, “We’re seeing global markets start to recover from the Global Financial Crisis (GFC) and show more stabilised growth. This, in turn, will improve the ‘investibility’ of emerging markets from a retail real estate perspective, rewarding pioneering investors with first mover advantage in terms of asset quality and levels of return. We anticipate the depth and variety of investor interest in these markets to grow throughout the rest of the year, but the real key to success will depend on their ability to understand the dynamics of local markets and to effectively manage their assets.”

For more information on Asian retail real estate markets read the full story on The Investor, or set up a meeting with Anuj Puri, Chairman & Country Head at JLL India at ICSC RECon

STAY CONNECTED DURING ICSC RECon 2014: Receive news from the conference floor by following @JLLRetail #RetailRevamped on Twitter and subscribing to this blog!

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