"Seoul Rises to 3rd Place in Asia-Pacific Commercial Real Estate Investment Preference, Marking All-Time High"[Real Estate AtoZ]

CBRE Surveys 422 Asia-Pacific Investors
Seoul Jumps from 8th Last Year to Tied 3rd with Singapore
Market Expands Beyond Offices to Logistics and Data Centers
88% of Greater Seoul Logistics Transactions Involve Foreign Capital

Seoul has reached an all-time high, ranking third among Asia-Pacific cities preferred for commercial real estate investment. Analysts attribute this to a shift away from the traditional office-centric market, as the range of investment targets has diversified to include data centers and logistics facilities, drawing an influx of global capital.

According to the "2026 Korea Investor Intention Survey Report" released by global real estate services company CBRE on March 21—based on a survey of 422 Asia-Pacific investors, including 77 Korean investors—Seoul ranked third this year among preferred investment destinations in the Asia-Pacific region, following Tokyo and Sydney. Singapore shares the third spot with Seoul. This marks a leap from eighth place last year, a jump of five places, and represents Seoul's best result since the survey began in 2020.

Cover of the "2026 South Korea Investor Intentions Survey Report." CBRE

CBRE cited the diversification of investment asset classes as the main factor behind Seoul’s rise in the rankings. The market, which had previously been focused on office assets, has expanded to include data centers, logistics centers, and hotels, making it an increasingly attractive market for overseas investors to build diverse portfolios.

CBRE stated, "The primary investment strategies for Seoul identified were core-plus (a strategy that enhances value in core assets) and value-add (a strategy that increases returns through active asset improvement), suggesting that Seoul is now perceived not just as a safe-haven but as a market where active income generation is possible."

In fact, capital inflows have been rising rapidly. Last year, approximately KRW 6.5 trillion in foreign capital entered the Seoul commercial real estate market, marking the highest level on record.

Annual overseas capital investment amounts in Seoul (above) and overseas capital investment scale. CBRE

This trend was especially pronounced in the Greater Seoul area’s logistics center market. Last year, the total transaction volume in the Greater Seoul logistics market was about KRW 4.4 trillion, with foreign capital accounting for KRW 3.9 trillion, or 88% of the total. In contrast, only one transaction involved domestic capital as the sole buyer. As domestic investors remained on the sidelines due to poor performance of existing assets, foreign investors actively acquired high-quality, large-scale assets.

By region, Incheon, where mega-sized logistics center deals were concentrated, led the market with approximately KRW 1.8 trillion across five transactions. Other strategic hubs such as Icheon, Anseong, and Gwangju also saw active deal flows.

Data centers have also emerged as a major investment destination. Among Korean respondents, 88% expected data center prices to rise this year—the highest level of price increase expectations across all asset classes. This reflects optimism that large-scale upfront investment and power supply issues, which had previously been entry barriers, will be eased as KRW 50 trillion from the KRW 150 trillion National Growth Fund—a public-private partnership—is set to be invested in infrastructure financing for AI data centers and power grids.

Domestic Investors’ Buying Intentions Hit All-Time High

2026 Domestic Investors' Buying and Selling Activity Outlook. CBRE

Investor sentiment has also rebounded. 83% of domestic investors responded that they plan to increase their real estate investment allocation this year, with intentions to increase purchases reaching the highest level since the survey began.

The net buying intention (the percentage intending to buy minus the percentage intending to sell) stood at 31%, 14 percentage points higher than the Asia-Pacific average. The main drivers for expanding investment were interest rate stabilization (31%), asset price adjustments (24%), and opportunities to invest in distressed assets (15%).

However, the pace and direction of central bank interest rate cuts (45%), the widening price gap between buyers and sellers, and rising labor and construction costs were still cited as major obstacles in the investment market.

Choi Sunghyun, Head of Capital Markets at CBRE Korea, expects the scale of commercial real estate investment in Seoul in 2026 to decline by 5–10% compared to the previous year, due to the base effect of last year’s record-high performance (about KRW 34 trillion) and the impact of conservative monetary policy.

Choi commented, "Rather than sharp price fluctuations, the market is entering a phase of gradual adjustment, with a focus on selective investment in high-quality assets and the enhancement of profit structures."

This content was produced with the assistance of AI translation services.