Cushman & Wakefield has released its 2024 forecast report. The commercial real estate market in Greater China has been influenced by a number of factors over the last couple of years, not least by the macro economy, relevant policies, domestic demand and technology progress. Our report generally examines the real estate industry in Greater China and looks to provide an understanding of the aspects that will influence new business opportunity generation in the region in 2024.
Shaun Brodie, Head of Research Content, Greater China, Cushman & Wakefield said, “The real estate market in Greater China will be a mixed picture in 2024 but if occupiers and investors are adaptable and nimble, they will be able to position themselves for success.”
The Macro Economy
In 2024, the mainland China economy will gradually recover. Challenges, however, will still be posed by the sluggish global economy.
Hot Themes And Alternatives
Sustainability will continue to be at the forefront of real estate decision making in Greater China. A couple of interesting alternative assets investors and developers might want to consider in 2024 are boutique neighborhood hotels and battery storage parks.
Office Sector
In the next two years, there will be a peak in supply in most of the major cities in mainland China, and this will inevitably lead to an increase in office project absorption pressure and a steady downward adjustment in rents. Landlords will need to strengthen their market competitiveness to attract tenants.
Retail Sector
The consumption structure of mainland China residents has gradually shifted from spending on necessity-focused goods and services to spending on leisure-focused goods and services over recent years. Retail sales volume related to concertgoing, performance entertainment, tourism, sports and F&B saw double digit growth over the past year.
Industrial Logistics Sector
Top warehouse operating logistics enterprises in Greater China have begun to further explore the application of digital technology and integrated platforms, which will improve distribution efficiency.
Real Estate Investment
A growing number of domestic investors have increased their allocation into commercial real estate assets, especially in Chinese mainland Tier 1 cities, as they seek stable long-term returns. We expect this trend to continue in 2024 given the relatively low interest rate environment for domestic capital and the recent expansion of C-REITs.
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About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2022, the firm reported global revenue of US$10.1 billion across its core services of valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com or follow @CushWake External Link on Twitter.
