CBRE Korea: Commercial Real Estate Investor Sentiment at All-Time High... Seoul Ranks Third Most Preferred City

Intention to Increase Purchases Up 12 Percentage Points Year-on-Year
Diversifying Portfolios into Data Centers and Logistics
Monetary Policy and Inflation Key External Variables

This year, the intention of domestic investors to increase their purchases of commercial real estate has reached a record high of 74% since the survey began.

According to the '2026 Korea Investor Intentions Survey Report' released on March 30 by global commercial real estate services company CBRE Korea, 74% of domestic investors expressed their intention to expand commercial real estate purchases this year, an increase of 12 percentage points from the previous year.

The survey was conducted in December of last year, targeting 422 investors in the Asia-Pacific region. The net-buying intention rose by 8 percentage points year-on-year to 31%, which is about 14 percentage points higher than the Asia-Pacific average. Among domestic respondents, 83% answered that they plan to increase their investment allocation this year.

The main reason for the investment expansion was cited as the stabilization of interest rates. Expectations for price adjustments and improved expected returns also supported investor sentiment.

This trend has led to a shift in the perception of overseas investors toward the Seoul commercial real estate market. Seoul rose five spots from last year to rank joint third among Asia-Pacific cities most preferred by overseas investors this year—the highest position since the relevant survey began.

However, external variables such as interest rate hikes and foreign exchange volatility remain, and capital sourcing strategies are expected to become a key factor determining investment performance. Forty-five percent of respondents identified central bank monetary policy direction as the biggest risk factor this year. This was followed by persistent inflation (22%), leverage availability (21%), and foreign exchange volatility (16%) as other investment variables.

Meanwhile, the commercial real estate market this year is expected to see portfolio diversification from office-centric investment to include a variety of sectors such as data centers.While traditional assets like offices remain the most preferred sector, interest in alternative sectors such as logistics, data centers, and hotels continues,with 88% of respondents predicting an increase in data center asset prices.

Soohae Choi, Executive Director and Head of Research at CBRE Korea, commented, "Since this survey was conducted at the end of last year, the interest rate outlook at that time may not have fully reflected current external volatility," adding, "The spread of geopolitical risks, rising oil prices, and inflationary pressures amplify the uncertainty surrounding the domestic interest rate path, which could limit market liquidity supply and transaction activity."

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