Korea Real Estate Market Outlook 2022

Economy

While economic growth is forecasted to remain steady, the prolonged COVID-19 pandemic, further rate hikes, ongoing supply chain disruption and inflationary pressure will continue to pose downside risks.

Office

With vacant space available for relocation remaining limited, this year will see a further decline in vacancy and a significant rise in rents. Leasing demand will broaden to more sectors.

Retail

With numerous global retailers planning market entry, and local e-commerce platforms emerging as a new source of demand for brick-and-mortar stores, CBRE expects leasing activity to strengthen over the course of 2022.

Logistics

The Greater Seoul logistics market will continue to see rental growth this year, supported by strong leasing demand and the addition of new prime assets. Large e-commerce and 3PL players will remain the primary sources of demand.

Investment

Seoul commercial real estate investment volume is expected to remain stable or increase slightly in 2022 to a level on par with 2021’s KRW 20 trillion, underpinning by continued strong purchasing by domestic investors.