Cushman & Wakefield: China Leads REIT Market Expansion in Asia while India’s REIT Market Demonstrates Robust Growth

The annual report revealed that the Chinese mainland REIT (C-REIT) market achieved a remarkable 85% increase in market value at the end of 2024, surpassing Hong Kong and becoming one of the region's top three REIT markets. In the same period, India's REIT market demonstrated robust growth in the office sector, driven by strong leasing demand for institutional-grade office space. Meanwhile, mature markets such as Japan, Singapore and Hong Kong moved toward stabilization, underlining their long-term resilience.

Catherine Chen, Director, Investor Client Intelligence & Insights, Asia Pacific at Cushman & Wakefield said, "The unprecedented growth in the C-REIT market highlights its role as a critical driver of regional expansion, while India's performance emphasizes the growing strength of the country's institutional-grade real estate. These markets continue to create new and exciting opportunities for investors targeting Asia."

Cushman & Wakefield's data showed a total of 263 active REIT products in the Asia market as of December 31, 2024, with a combined market value of US$235.8 billion, reflecting a year-on-year decline of 6.5%. The contraction was primarily driven by declines in the U.S. dollar values of the Japan, Singapore and Hong Kong markets due to the widespread softening in REIT stock prices and unfavorable exchange rate movements. Amid these declines, the Chinese mainland REIT market emerged as a bright spot, posting an impressive 85% year-on-year rise in market value, attributable to new REIT product issuances and strong investor demand for infrastructure-backed assets.

In the mature markets, Japanese REITs experienced significant gains in dividend yield, led by stock price moderation and asset performance improvements, particularly among hotel REITs, which benefited from inbound tourism. In Singapore, positive total returns were observed across multiple property types in 2024, including data centres at 9.7%, and healthcare at 6.9%. Elsewhere in Asia, Thailand demonstrated robust performance with a 41% increase in market value, marking it as the second-highest growth market in the region. The Philippines, Malaysia and India reported increases of 37%, 21% and 13% respectively, supported by their favorable economic fundamentals and attractive real estate sectors.

Total Market Value of Active REITs on Major Asia Exchanges (December 2024)

Market	Number of REITs	Market Value (USD billion)	Market Share (%)
Japan	57	90.8	38.5
Singapore	39	67.4	28.6
Chinese Mainland	58	21.4	9.1
Hong Kong, China	11	16.1	6.8
India	4	11.0	4.6
Thailand	38	8.3	3.5
Malaysia	18	7.7	3.2
The Philippines	8	5.8	2.5
South Korea	24	5.3	2.3
Taiwan, China	6	21.0	0.9
Total	263	235.8	100

Source: Bloomberg database, compiled by Cushman & Wakefield Valuation & Advisory Services

Expansion of C-REIT market

The year 2024 saw a breakthrough in C-REIT issuance with 29 new REIT products, including 19 real estate-backed REITs. This represented the highest annual issuance recorded to date. Among product categories, consumer infrastructure REITs led the issuance count with seven new listings, followed by industrial park REITs with six launches. Heading into 2025, the market has maintained its robust trajectory with six REITs launched in Q1, including five real estate-backed products. As of March 31, 2025, a total of 64 public infrastructure REITs were listed in the Chinese mainland, marking a significant period of growth in the market.

Chris Yang, Senior Director, Head of REITs Practice Group, China, at Cushman & Wakefield said, "The C-REIT market has achieved a historic milestone in 2024, in both market value expansion and new product issuance. This surge reflects both greater investor confidence in infrastructure-backed REITs and the success of new issuances in retail and industrial REITs. Looking ahead, we anticipate further diversification and expansion as regulatory frameworks evolve to attract both domestic and international investors."

Global capability centres drive leasing demand for India office REITs

India's office asset REITs have attracted a considerable share of demand from global capability centres (GCCs), which is an important growth driver for India's office markets. At a Pan-India level, GCCs have accounted for 28%–29% of gross leasing volume on average over the last four quarters up to Q1 2025. In contrast, REIT landlords were able to achieve a much higher share, at 40%–60% of total leasing demand from GCC firms, rendering institutionally owned assets the preferred choice for many multinational occupiers.

Somy Thomas, Executive Managing Director, Valuations and Co- Head, Capital Markets, India at Cushman & Wakefield commented, "India's REIT market continues to carve a strong trajectory, with exceptional growth seen across the office sector. Multinational companies, especially GCCs have driven record leasing activity, which now accounts for a significant share of the nation's Grade A office stock. There has also been a growing preference among occupiers for premium grade assets, thereby significantly benefiting REITs. All three office REITs in India achieved occupancy rates close to 90% at the end of Q1 2025."

A fourth office REIT in India is expected to make its listing debut by the end of the calendar year 2025. With 48 million sq ft of Pan-India Grade A office space (37 million sq ft operational and 11 million sq ft under development), Knowledge Realty Trust, which is backed by Blackstone and Sattva Developers is expected to become one of the largest real estate investment trusts listed in India.

Looking Ahead

The Asia REIT market is poised for continued evolution as it navigates the dual forces of mature market stabilization and emerging market expansion. "We expect the mature markets of Japan, Singapore and Hong Kong to focus on enhancing operational efficiencies while grappling with the challenges posed by global monetary policy shifts. On the other hand, emerging markets, particularly the Chinese mainland, India and Thailand are expected to continue to grow, bolstered by strong economic fundamentals and supportive regulatory frameworks", noted Catherine Chen.

Cushman & Wakefield's report also noted that data centre and hospitality REITs are expected to remain highly visible on investors' radar, driven by AI advancements and recovery in the tourism sector respectively. Additionally, M&A activity is likely to pick up as players seek scale and diversification to better weather market fluctuations.

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Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2024, the firm reported revenue of $9.4 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.hk or follow us on LinkedIn (https://www.linkedin.com/company/cushman-&-wakefield-greater-china).