Overseas investors to focus on Korea in 2021
Insights & recommendations
With global private equity firms (PEFs) and sovereign wealth funds (SWFs) successfully closing large APAC focused funds, we expect more active investment by foreign investors in the Korean real estate market.
- Compared to North America and Europe, the APAC region should recover more rapidly from COVID-19.
- Hence, we expect more dry powder to be deployed in the Korean market in 2021, as funds invest undeployed capital lingering from 2020.
- We expect foreign investors to continuously seek to acquire logistics assets, depressing yields as prices rise.
- We recommend foreign investors focus on value-add and opportunistic strategies as opportunities for prime office buildings are decreasing in 2021.
- We recommend investors diversify both their investment geographies by focusing on emerging office markets such as Pangyo and Magok.
- We also recommend investors diversify their investment sectors by focusing on the data center and logistics sectors.
Please kindly contact Judy Jang if you have any question on the report.