Market Size of ASEAN Office Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 9.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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ASEAN Office Real Estate Market Analysis
The size of the ASEAN Office Real Estate Market is USD 33.17 billion in the current year and is anticipated to register a CAGR of over 9% during the forecast period. The region's rise in start-ups and the increasing demand for co-working spaces drive the market.
- The COVID-19 outbreak caused business closures, reducing the conventional office space market. In addition to its immediate effects, the pandemic affected the prospects for office real estate since traditional offices were less in demand as work-from-home policies gained popularity. The effects of the epidemic also show a rise in pricing misalignments. As the economy picks up speed, the misalignment is probably going to get smaller. However, due to shifting cultural tastes, the industry may face structural challenges in the office real estate market.
- In order to create a hybrid workplace model, occupiers are likely to concentrate more on merging traditional leased spaces, remote working possibilities, and flexible spaces within real estate portfolios. The plan to decentralize the workplace and provide more locations to satisfy the demands of a more mobile workforce is anticipated to have cost and portfolio optimization as its objectives. According to industry experts, more office space will be needed in the Asia Pacific over the next 10 years than in the preceding ten, notwithstanding the challenge posed by work-from-home arrangements.
- In the Asia Pacific region, it is anticipated that 1.35 billion square feet of office space will be needed over the course of the next ten years, a 66% increase over the 800 million square feet absorbed by corporate occupiers during the previous ten years. In APAC, 55% of office construction work is already in progress. It is estimated that between now and the end of 2024, 120 million square feet of office space will be constructed annually on average.
