2026 Korea Investor Intentions Survey

1. Commercial real estate investment activity in Korea is expected to remain robust in 2026, with the office sector continuing to lead market activity. However, due to the high-base effect resulting from 2025’s record volume and the impending end of accommodative monetary policy, total transaction volume is projected to decline slightly compared to last year.

2. Approximately 83% of Korean respondents indicated they intend to increase their investment this year, reflecting a stronger proactive stance toward purchasing. However, this remains contingent upon a decline in borrowing costs following interest rate reductions, along with reasonable price adjustments implemented by vendors.

3. Investors identified central bank policy as the most significant challenge they expect to impact the domestic commercial real estate investment market this year. The disparity in price expectations between sellers and buyers, coupled with rising labor and construction costs, continue to pose headwinds alongside weakening leasing demand. Concerns regarding macroeconomic risks, such as inflation and exchange rate volatility, have also heightened.

4. While offices remain a traditional core asset class, their popularity continued to decline this year due to slowing leasing demand and oversupply concerns. Although prime logistics facilities remain keenly sought after, interest in alternative sectors such as hotels, data centers, and co-living properties has expanded significantly, driven by socio-structural changes in Korea.

5. Amidst a downward adjustment in investors’ preferences for alternative sectors, interest in real estate debt and senior living—which previously generated overwhelming demand—recorded a decline this year. This shift reflects investors’ rigorous reassessment of profitability in response to heightened operational risks.

6. Ongoing policy uncertainty and the dilution of interest rate reduction expectations are expected to keep yields for Grade A office and logistics assets stagnant in 2026. This year’s market is projected to be characterised by selective investment in prime assets and greater sophistication of return structures rather than sharp price fluctuations.