In 2024, the commercial real estate market experienced increased activity, driven by expectations of interest rate cuts. The office sector demonstrated strong performance, supported by stable rents and yields, while the logistics sector continued to see transactions involving prime centers and NPLs, despite ongoing oversupply challenges. Trends in the office, logistics, and hotel markets in 2024 are expected to carry into 2025, shaped by supply and demand dynamics. The office leasing market is likely to remain favorable to landlords, while the logistics sector will continue to be tenant-driven. In the hotel market, the rapid recovery in tourist numbers is expected to outpace room supply, leading to further increase in ADR. In the retail sector, shopping malls and department stores that enhance customer experiences are gaining traction, but reduced consumer spending is likely to amplify sales disparities across different retail shops and locations.
This report presents the 2025 outlook for key sectors of South Korea’s commercial real estate market.
It provides detailed insights on the following topics:
- Capital Markets
- Office
- Logistics
- Retail
- Hotel
- Macroeconomics
