• Each year, LaSalle estimates the total value of investable commercial real estate and its global distribution. The estimates establish a baseline for the market size of real estate in each country and can help fund managers and investors assess their relative allocations. The relevant investment universe differs by investor type and objectives, and the estimates reflect these differences by breaking the real estate universe into three segments: total investable commercial real estate market size, institutionally-owned, and public.

    All three of LaSalle’s estimates increased in the 2018 estimation. Institutionally-owned real estate grew 9% last year, powered mainly by strong price appreciation in Asia Pacific and Continental Europe. LaSalle estimates that institutions own about one-fifth of all investable commercial real estate. The public real estate universe, which is based on our gross asset value estimates rather than market capitalization, only grew 3%. Privatization and delisting activities roughly balanced initial public offering (IPO) activities, but underlying asset appreciation was slower. Public companies own 44% of all institutional-owned real estate, which is down slightly from the 2017 estimation.

    Red Paper - August 2018 Sizing Up Asia Pacific Real Estate MarketsPDF
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