Can Logistics/Industrial REITs continue to out perform in Asia?
Cushman & Wakefield’s 2021-2022 Asia REIT Market Insight report investigates the burgeoning Real Estate Investment Trust market in Asia, examining the primary drivers and state of play in key markets mainland China, Hong Kong SAR, India, Japan and Singapore.
The report reveals that, backed by robust capital structures, sufficient financial liquidity, and supportive regulatory policies, REITs continue to gain overall momentum as the pandemic subsides with logistics/industrial and data centre REITs outperforming more traditional asset classes.
- Asia market REITs recovered strongly during 2021 after demonstrating notable resilience through the peak of the COVID-19 period, supported by new economy asset classes.
- Industrial and logistics REITs in the Asia market showed the greatest resilience, recording a total return of 24.7 percent, as all other asset classes achieved positive returns.
- Supply chain uncertainties are creating demand as operators accumulate reserves of warehouse space.
- Mature REIT markets can expect to see greater M&A activity through the remainder of 2022 while developing markets can expect to see growth of REITs accelerate.