Key Takeaways
- • Goodwin Procter, KPMG, and IQ-EQ have published a comprehensive market report analyzing current sentiment among senior executives at leading private real estate firms operating across the Asia-Pacific region, covering 12 distinct market segments and strategic themes.
- • The report provides structured analysis across major APAC markets (Japan, China, India, Australia, Korea, Singapore, and emerging Southeast Asian markets) alongside cross-cutting themes including private credit, secondaries, ESG, technology/AI adoption, and talent retention challenges.
- • Private credit has emerged as a prominent strategy in APAC real estate, with the market projected to grow 46% from US$59 billion in 2024 to US$92 billion by 2027, positioning it as a material alternative to traditional debt financing.
- • APAC real estate investment demonstrated resilience through 2025, with transactions rising 8.7% year-over-year and capital deployment surging 23% in Q4 2024, signaling sustained institutional appetite despite earlier rate-hiking cycles.
- • The Asia-Pacific REIT market is forecast to expand from USD 429.95 billion in 2026 to USD 643.23 billion by 2031 at a compound annual growth rate of 8.39%, reflecting broader confidence in regional real estate fundamentals.
Summary
Goodwin Procter, in collaboration with KPMG and IQ-EQ, has released "State of Play," a market intelligence report synthesizing current sentiment among senior executives at leading private equity real estate practitioners across the Asia-Pacific region. The report, published as of October 2023, represents the first formal collaboration among these three institutions to assess GP and LP perspectives on APAC real estate fund trends and forward-looking strategy.
The report is organized into 12 thematic chapters covering both geographic markets and cross-cutting operational themes. Geographic coverage includes Japan, China, India, Australia, Korea, Singapore, and emerging markets within Southeast Asia, alongside analysis of APAC's competitive position within the global real estate investment landscape. Thematic chapters address capital sourcing mechanisms for APAC real estate funds, private credit strategies, secondary market activity, ESG implementation, technology and artificial intelligence integration, and human capital challenges including hiring and staff retention.
Private credit has emerged as a material strategic focus for APAC real estate practitioners. Industry analysis indicates the APAC private credit market is projected to expand significantly, growing 46% from US$59 billion in 2024 to US$92 billion by 2027. This expansion reflects both new product innovation and enhanced digital access to capital sources, with wealth investor participation expected to rise to 28% of assets under management by 2027, up from 23% in 2020.
Transaction activity and capital deployment metrics underscore sustained institutional conviction in the region. APAC real estate transactions increased 8.7% year-over-year through 2025, with Q4 2024 marking the fifth consecutive quarter of annualized growth and capital investment surging 23% in Q4 2024. These figures suggest that despite earlier interest rate pressures, investors continue to commit capital to APAC real estate opportunities as yield stabilization creates pricing clarity.
Longer-term market structure indicators reinforce this positive trajectory. The Asia-Pacific REIT market, valued at USD 396.67 billion in 2025, is forecast to grow from USD 429.95 billion in 2026 to USD 643.23 billion by 2031, representing a compound annual growth rate of 8.39% over the forecast period. This growth trajectory, coupled with the report's focus on emerging trends including AI-driven operations, ESG integration, and alternative financing mechanisms, positions the report as essential reading for institutions evaluating capital allocation to APAC real estate strategies.
The report is organized into 12 thematic chapters covering both geographic markets and cross-cutting operational themes. Geographic coverage includes Japan, China, India, Australia, Korea, Singapore, and emerging markets within Southeast Asia, alongside analysis of APAC's competitive position within the global real estate investment landscape. Thematic chapters address capital sourcing mechanisms for APAC real estate funds, private credit strategies, secondary market activity, ESG implementation, technology and artificial intelligence integration, and human capital challenges including hiring and staff retention.
Private credit has emerged as a material strategic focus for APAC real estate practitioners. Industry analysis indicates the APAC private credit market is projected to expand significantly, growing 46% from US$59 billion in 2024 to US$92 billion by 2027. This expansion reflects both new product innovation and enhanced digital access to capital sources, with wealth investor participation expected to rise to 28% of assets under management by 2027, up from 23% in 2020.
Transaction activity and capital deployment metrics underscore sustained institutional conviction in the region. APAC real estate transactions increased 8.7% year-over-year through 2025, with Q4 2024 marking the fifth consecutive quarter of annualized growth and capital investment surging 23% in Q4 2024. These figures suggest that despite earlier interest rate pressures, investors continue to commit capital to APAC real estate opportunities as yield stabilization creates pricing clarity.
Longer-term market structure indicators reinforce this positive trajectory. The Asia-Pacific REIT market, valued at USD 396.67 billion in 2025, is forecast to grow from USD 429.95 billion in 2026 to USD 643.23 billion by 2031, representing a compound annual growth rate of 8.39% over the forecast period. This growth trajectory, coupled with the report's focus on emerging trends including AI-driven operations, ESG integration, and alternative financing mechanisms, positions the report as essential reading for institutions evaluating capital allocation to APAC real estate strategies.
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