Sustainability has become a more important factor in decision-making this year.
Due to advancements in market transparency, the commercial real estate sector in the Asia Pacific region is in a better position to draw more investment in the upcoming years, reported RETalk Asia
“The strides toward greater transparency in Asia Pacific will intensify investor interest and bolster occupier confidence in this region. As a result, we expect to see more capital deployed into those markets that can demonstrate consistent efforts to make accurate data available, enforce legal protections for property ownership, and enhance the regulatory environment to facilitate the transactions,” said Anthony Couse, CEO, Asia Pacific, JLL.
He added that there had also been a shift in how sustainability plays into the decision-making process.
Sustainability has become a more important factor in decision-making this year. The region’s long-term attractiveness for investors and occupiers is likely to be enhanced by the progress and implementation of broad net zero carbon plans and strategies.
Moreover, many investors in the region continue to place a strong emphasis on diversification. In nearly two-thirds of the markets being tracked, institutional capital is active in the alternative real estate sectors. This indicates higher expectations for visibility across specialised property categories including lab space, data centres, and student housing.
Michael Glancy, country head of JLL Thailand said that since rising from the semi-transparent tier of the 2020 Global Real Estate Transparency Index, Thailand has retained its status as a transparent real estate market. The country’s competitiveness will be boosted as market transparency improves, and it will attract more capital now that it has completely reopened its borders.
To help investors and occupiers make informed, risk-based decisions, transparency rankings are evaluated based on market benchmarks, governance structures, regulatory environments, transaction processes, and sustainability indicators.
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