The Asia-Pacific region is witnessing a surge in cross-border real estate investments, which are set to soar by 50 per cent year on year in 2024, led by growth in data centres, according to Knight Frank.
The anticipated growth will push investments to about US$48 billion, the highest level in two years, the property consultancy said.
Cross-border investment in Asia-Pacific jumped 15.7 per cent year on year to US$36.3 billion in the first nine months, outperforming the international market. Globally, cross-border transactions declined 1.3 per cent to US$95.1 billion in the same period, compared with 2023, according to the firm.
“The September rate cut has been a catalyst, reducing borrowing costs and making debt-financed acquisitions more attractive,” said Neil Brookes, global head of capital markets at Knight Frank.
Last month, the US Federal Reserve cut interest rates by half a percentage point, the first reduction in four years, following a slow but steady decline in America’s inflation rate.
This, coupled with stabilisation in asset prices, signals a positive shift in market dynamics, Brookes said.
“Asia-Pacific is feeling the ripple effects of this global optimism, and we are seeing increased investor confidence across our markets,” he said. “As we move towards the end of 2024, we anticipate this forward momentum to accelerate, potentially outpacing global recovery rates.”