Figures | Intelligent Investment
Q3 2023 Asia Pacific Cap Rate Survey
November 9, 2023
Selling pressure persists across most of the region, with the primary exception of India which is receiving increased buying interest from investors. Most investors – excluding private investors and institutional investors/LPs – also have higher intentions to sell than in Q1 2023.
The survey reveals that the price gap is widening for assets with strong fundamentals, such as multifamily, institutional-grade modern logistics facilities, prime shopping malls, cold storage and data centres.
While institutional-grade logistics remains the most popular sector for investors, interest in retail has increased. Slow re-pricing is prompting investors to seek alternative or niche sectors, with real estate debt strategies gaining traction among alternatives.
Cap rates are set to expand across Asia Pacific, reflecting a prolonged high interest rate environment, and as re-pricing lags behind the US and Europe.