CBRE Korea: “Commercial Real Estate Investment Intent in Korea Hits Record High in 2025, Driven by Rate Cut Expectations”

- 62% of respondents intend to purchase commercial real estate in 2025 — the highest level recorded by CBRE Korea
- 79% of Korean respondents plan to maintain or increase their commercial real estate investment this year

April 9, 2025 (Seoul) – CBRE Korea, the world's largest commercial real estate services company, announced that investment appetite for commercial real estate in Korea has reached its highest level since the company began conducting its annual investor survey. According to the newly released “2025 Korea Investor Intentions Survey,” 62% of respondents expressed intentions to acquire assets this year.

The survey was conducted to gauge the commercial real estate strategies and market outlook of investors across the Asia Pacific region for 2025. It gathered insights from 61 Korean investors and 468 investors across Asia Pacific, covering areas such as buying and selling activity, cross-border investment trends, and ESG strategies. The 62% acquisition intent among Korean respondents represents a 19% increase from the previous year and is approximately 10% higher than the regional average.

In February, the Bank of Korea lowered its base interest rate from 3.00% to 2.75% and revised the country’s GDP growth forecast from 1.9% to 1.5%, suggesting the potential for further rate cuts. Against this backdrop, market activity is expected to accelerate in 2025, as investor sentiment improves and previously deferred projects re-enter the market.

Transaction volume in Seoul's commercial real estate market reached KRW 22 trillion in 2024, the highest level since 2015. In 2025, significant deals are expected to include 45 office properties (approximately 2.02 million square meters), 15 logistics facilities (1.55 million square meters), and 16 hotels (approximately 530,000 square meters). Additional hotel assets in key tourist destinations such as Jeju are also anticipated to come to market.

In terms of investment strategy, investor interest in opportunistic and non-performing loan (NPL) assets has declined, while mid-risk, mid-return strategies such as core-plus and value-add have gained traction.

Sector-wise, offices remained the most preferred asset class, albeit with a slight decrease from last year. Logistics assets were the next most favored, followed by rising interest in alternative sectors such as data centers, hotels, and retail.

Office investments by domestic investors are expected to focus on core assets located within major business districts, offering long-term income stability. In contrast, overseas investors showed a preference for value-add strategies in fringe or non-core locations.

Core and core-plus strategies are also becoming more prominent in the logistics sector. In 2024, around 70% of logistics transactions involved forward purchases or NPL-related deals, limiting physical deal flow. However, this year will likely see a shift, with assets such as DC3 and Naechon DC in Icheon owned by Kendall Square Asset Management, and the Gwangju Gonjiam Logistics Center owned by Mirae Asset Global Investments currently up for sale.

Among alternative sectors, data centers emerged as the most favored investment type after traditional assets like office and logistics. Following the sale of a data center in Hanam in 2024, investor interest remains strong in emerging development hubs such as Ansan. The hotel investment market also experienced significant growth, reaching KRW 1.7 trillion in 2024 — a nearly 350% increase year-over-year. Major portfolio deals involving Korean conglomerates such as KT, Daelim, and Lotte are expected in 2025, driving continued interest from both domestic and global investors.

Interest in ESG strategies continues to rise. Among Korean respondents, 72% are considering ESG conversions through renovations of existing assets, while 61% plan to acquire or develop green buildings. Notably, 85% of respondents indicated a willingness to pay a premium for certified sustainable properties, signaling ESG’s growing influence on asset value.

Claire Choi, Senior Director, Head of Research at CBRE Korea, stated, “We expect Korea’s commercial real estate market to see stronger momentum in 2025, supported by interest rate cuts, the growing prominence of alternative sectors, and the expanding adoption of ESG strategies. While price expectation gaps between buyers and sellers remain a key factor, the overall market trend points toward continued growth.”

Sean Choi, Head of Capital Markets, Executive Director at CBRE Korea, added, “The record-high investment intention reflects renewed confidence in market recovery and the intrinsic appeal of Korean assets. In particular, demand for core-plus and value-add strategies is on the rise, suggesting a shift in asset selection criteria and a broader range of opportunities ahead.”