JLL: Global real estate investment activity increases in 2025, and the Asia-Pacific region becomes a growth engine
Recently, the dynamics of the global real estate market have attracted much attention. The latest report released by JLL shows that global real estate investment activity will increase significantly in 2025, with the Asia-Pacific region becoming the main engine of growth. The following are the core data and analysis of the report:
1. Global real estate investment trends
According to JLL's forecast, the total global real estate investment will exceed US$1.2 trillion in 2025, an increase of about 15% from 2023. The following is a comparison of global real estate investment data in the past three years:
| years | Total investment (trillion dollars) | Year-on-year growth rate |
|---|---|---|
| 2023 | 1.04 | 5.2% |
| 2024 (Forecast) | 1.12 | 7.7% |
| 2025 (Forecast) | 1.25 | 11.6% |
2. Asia-Pacific becomes a growth engine
The report pointed out that the Asia-Pacific region will become the core driving force for global real estate investment growth in 2025, mainly due to the accelerated economic recovery and urbanization process in China, India and Southeast Asian countries. The following are investment forecasts for major markets in the Asia-Pacific region:
| Country/Region | Investment amount in 2025 (billion USD) | Growth Rate (2023-2025) |
|---|---|---|
| China | 320 | 18% |
| India | 85 | twenty two% |
| Japan | 75 | 12% |
| Southeast Asia (including Singapore, Vietnam, etc.) | 65 | 25% |
3. Analysis of hot investment areas
From a sub-sector perspective, logistics real estate, data centers and green buildings will become the most popular asset categories in the next two years. The following is the distribution of global real estate investment hot spots in 2025:
| Asset Category | Investment share (2025 forecast) | Growth potential (2023-2025) |
|---|---|---|
| Logistics Real Estate | 28% | high |
| Data Center | 20% | Extremely high |
| Green Building | 18% | high |
| Residential | 15% | middle |
| Commercial office | 12% | Low |
IV. Drivers and Challenges
JLL believes that the main drivers of increased global real estate investment activity include:Economic recovery, low interest rate environment, growth in ESG investment demand. However, geopolitical risks and inflationary pressures remain potential challenges.
Taking ESG (environment, society, governance) as an example, global green building investment in 2025 is expected to account for 18% of total real estate investment, an increase of 5 percentage points from 2023. The Asia-Pacific region has performed particularly well in this field, and China and India have introduced a number of policies to support the development of green buildings.
5. Summary
Overall, the global real estate market will usher in a new round of growth cycle in 2025. With its economic vitality and policy support, the Asia-Pacific region will become a key area for investors to deploy. Emerging fields such as logistics real estate and data centers have huge development potential, while green buildings represent long-term investment trends. Investors need to pay close attention to market trends, seize opportunities, and respond to challenges.
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