The Growth of REITs in Asia

The sector remains very small relative to potential and will continue to grow.

The Global Financial Crisis caused the total market capitalisation to drop in 2007 and 2008 but the recovery in Asian REITs was quicker than almost all asset classes so that by the end of 2009 the pre-crisis peak had been surpassed.

After a two year pause during the crisis, IPOs started again in 2010. Outperformance of Asian REITs, the increasing acceptance of the REIT asset class and improvements to existing REIT regulations will encourage further IPOs.

New REIT markets are also expected to lead to further growth (for example, India, the Philippines and Thailand have approved legislation while China is in progress).

 Market cap*

REIT Growth 2016

*Japan, Singapore, Hong Kong, Malaysia & Thailand
Source: B&I, Bloomberg, DBS, Nomura.  January 2016