(SINGAPORE/HONG KONG) â Hines, a global real estate investment manager, has today released a new âWhy Asia Nowâ research paper. The study finds that an allocation to developed Asia real estate can help boost risk-adjusted returns and reduce downside volatility for global institutional investors, even when currency effects are considered.
Based on Hinesâ proprietary research, the study articulates Asiaâs positive growth outlook, the regionâs depth of opportunity across asset classes, and where Asia currently presents attractive entry points.
âFundamentals in Asia are pointing in a positive direction,â said Chiang Ling Ng, chief investment officer, Asia at Hines.
âBecause of the regionâs secular growth trends and unique in-market dynamics, we see Asia poised to generate a spectrum of opportunities.â
The regionâs real estate investment prospects include core plus and value add opportunities in office, residential, industrial and logistics, and retail, driven by Asiaâs population growth and healthy labour markets. Its real estate also stands to benefit from potentially higher-for-longer inflation, given the historical correlation between inflation and rental growth.
Economies in Asia have also become increasingly self-reliant, intra-regionally driven, and wealthier, the study finds, with the region projected to grow at double the rate of the United States and Europe annually over the coming years.[1]
âYou can call Asia the âgrowth stockâ in a global real estate market portfolio,â said Tim Jowett, head of research, Asia at Hines. âAs the region continues to grow and urbanize, we project its total value and share of investible real estate to also grow, reaching a point where Asia comprises the largest share globally. This will help create tremendous opportunities for investors. So, weâre very optimistic about Asia.â
According to the study, intra-regional diversification supports a more stable return profile given the meaningful differences in monetary policies, interest rates, and real estate fundamentals across Asia. As a result, individual markets are not highly correlated, allowing investors to benefit from diversification.
âWith Asiaâs diversity comes a deep but complex set of opportunities,â said Ng. âCapturing them requires local expertise to identify the right real estate, access attractive deals, and create value at the individual asset level.â
The âWhy Asia Nowâ research paper is available for download on the Hines website.
About Hines
Hines is a leading global real estate investment manager. We own and operate $93.2 billion[2]
of assets across property types and on behalf of a diverse group of institutional and private wealth clients. Every day, our 5,000 employees in 30 countries draw on our 65-year history to build the world forward by investing in, developing, and managing some of the worldâs best real estate. To learn more, visit www.hines.com and follow @Hines on social media.
[1] This is based on Oxford Economics data as of 27 March 2024.
[2] Includes both the global Hines organization and RIA AUM as of December 31, 2023.