Invesco Real Estate – Asia Pacific Market Outlook H2 2021

In Asia Pacific, recovery looks uneven but strong, led by a number of key outperformers. With vaccination programs rolling out in major countries and lowering infection numbers in major markets, key economies are likely to start gaining growth momentum in 2021-22. A growing concern to many, we too believe that interest rates may rise but will still likely remain very low by historic standards. In fact, mild inflation and interest rate increases could actually be good for the real estate sector. Meanwhile, broader recovery across the Asia Pacific region is expected to be uneven with tech, business services and health industries likely to outperform.