Asia-Pacific Cross-Border Property Investment Skyrockets Towards 2-Year High, Fueled by Data Centre Expansion: A Knight Frank Report

Asia's cross-border real estate investment is predicted to reach a two-year peak due to the influence of data centers. Knight Frank forecasts that an expected increase of 50% will propel the value of cross-border investments in 2024 to roughly US$48 billion.

There's an observed increase in international property investments in the Asia-Pacific area, with a predicted rise of 50% annually by 2024. This upswing is primarily driven by the expansion in data centres, as reported by Knight Frank.

The expected expansion is projected to boost investments to approximately US$48 billion, marking the highest amount in two years, according to the real estate consulting firm.

Investment across Asian-Pacific borders saw a significant rise of 15.7% year on year, hitting US$36.3 billion within the first three quarters, thus surpassing the global market. Contrastingly, worldwide cross-border dealings dipped by 1.3%, amounting to US$95.1 billion during the same timeframe, in comparison to the year 2023, as reported by the company.

"The rate cut in September has acted as a stimulant, decreasing the expense of borrowing and enhancing the appeal of acquisitions financed through debt," stated Neil Brookes, the worldwide chief of capital markets at Knight Frank.

In the previous month, the United States Federal Reserve decreased interest rates by 0.5 percent, marking the first dip in four years, a move that came in response to a gradual yet consistent drop in the inflation rate in the United States.

Brookes noted that the steadying of asset prices, combined with this, indicates a favorable change in market trends.

"The sense of global optimism is being experienced in the Asia-Pacific region, leading to a surge in investor confidence in our markets," he remarked. "As we approach the close of 2024, we expect this positive trend to intensify, possibly surpassing the pace of worldwide recovery."