Viewpoint | Intelligent Investment
Analysing the Funding Gap: A Bird's-Eye View of the Asia Pacific Commercial Real Estate Debt Market
May 4, 2023
With the Asia Pacific commercial real estate market witnessing rapid increases in financing costs, attention is turning to the sizable volume of outstanding senior loans due to mature, which could lead to a funding gap in the next few years.
CBRE estimates that there is currently US$177 billion of outstanding senior commercial real estate debt in Asia Pacific, with a debt funding gap of US$5.8 billion set to emerge in the region between 2023 and 2025.
This Viewpoint looks at the factors underpinning the debt funding gap in Asia Pacific over the next few years, including the markets and sectors that are likely to face the biggest gap, as well as the implications for investors, borrowers and lenders.
Henry Chin, Ph.D.
Global Head of Investor Thought Leadership & Head of Research, Asia Pacific
Head of Capital Markets, Asia Pacific