Market Size of South Korea Office Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Korea Office Real Estate Market Analysis
The South Korean office real estate market is expected to register a CAGR of more than 5% during the forecast period (2022-2027).
The COVID-19 pandemic affected the office real estate market in South Korea due to restrictions, social distancing policies, and work-from-home culture. Though the market is in a recovery phase, it is yet to reach the pre-pandemic levels. The growth of the sector is driven by increasing office space absorption, growth in leasing activities, declining vacancy rates, etc.
Seoul is emerging as a leader in the office real estate sector. Office buildings accounted for more than 70% of commercial property transactions in Seoul during Q2 2021. In addition, office building prices in Seoul experienced robust growth in Q2 2021, driven by increasing investments from domestic investors. Take-up of prime office spaces remained high in the country during Q3 2021. Most of the prime office spaces are absorbed by new organizations (with 27% absorption), secondary to prime (with 35% absorption), prime to prime (19%), and expanding existing organizations (20%).
