In 2021, notwithstanding Covid, Asian outbound real estate investment is expected to recover.

The United States is the most popular outbound property investment location for Asians. According to new research from global property consultant CBRE, Asian outbound commercial real estate investment volume fell 37 percent year over year to $30 billion in 2020, owing to Coronavirus-related barriers such as travel restrictions and site inspections. freelancers

For the third year in a row, Singapore was the most active source of outbound capital, accounting for $12.1 billion in transactions in 2020. The lower hedging costs of the Korean won against the US dollar aided investors in this market, which accounts for roughly half of Asian outbound investment in the United States and is the second-largest source of outbound capital overall. Mainland China came in third in terms of outbound capital, owing to many large purchases made in Australia. Although Mainland China's overseas investment increased modestly, the total sum remains significantly below historical highs.

The United States was the biggest outbound capital destination in 2020, drawing $7 billion in money, followed by the United Kingdom, Australia, Mainland China, and Germany. As high liquidity and attractive yields compared to continental European markets more than offset Brexit-related anxiety, Asian outbound investment into the UK remained largely steady with 2019 levels.

"Despite a lower volume of foreign investment in 2020, we believe that real estate investment will pick up in the coming 12 months. According to CBRE's 2021 Asia Pacific Investor Intentions Survey, 70% of investors in the region plan to purchase assets outside of the region in 2021, indicating a mild recovery in Asian outbound investment volume "CBRE's Dr. Henry Chin, Global Head of Investor Thought Leadership and Head of Research, Asia Pacific, said, "It's going to be a big year." "The majority of these acquisitions are projected to be made within Asia, in markets such as Tokyo, Singapore, Seoul, and Mainland China tier I cities, due to current travel restrictions, investors' experience with Asia, and the region's predicted strong economic resurgence. Looking beyond Asia, the United States and the United Kingdom are expected to remain among the top outbound capital destinations, owing to lower hedging costs and a favourable yield spread, respectively."

Only logistics saw a rise in Asian outbound investment during the year, with $7.2 billion in transactions signed, a major increase from the $5.1 billion inked in 2019. The pandemic-driven acceleration of e-commerce consumption, according to CBRE, will enhance demand for this asset class even more in 2021, with portfolios continuing in high demand. Interest in logistics assets in the United States, which accounted for more than half of Asian outbound CBRE Press Release investment in the sector last year, is expected to remain strong, owing to relatively low asset availability and lowering hedging costs for assets denominated in US dollars.

"While the pandemic did inevitably cause a drop in Asian outbound investment in 2020, buyer enthusiasm for foreign purchases remained strong, and transaction levels across many important asset types were unexpectedly resilient. Asian investors will be on the lookout for chances as market sentiment and economic activity continue to rise. Demand for logistics assets is strong, and we expect it to continue in 2021, with some clients even ready to bid beyond asking prices "CBRE's Head of Capital Markets, Asia Pacific, Greg Hyland, stated.

Despite concerns about the outlook for office demand following the relatively successful mainstream adoption of remote working, Asian buyers seeking this asset class beyond their home region continue to show considerable interest in the sector. Sale-leaseback arrangements for huge corporate headquarters, as well as other income-producing office assets, have been particularly attractive investments. Asian investors closed $17.5 billion in office deals in 2020, more than all other sectors combined.