A forecast has emerged that funds will flow into high-quality assets in the office real estate market in the new year of 2025, exacerbating polarization.
Aegis Asset Management noted on the 31st that it released a report titled '2025 Market Outlook' containing this information. The research team at Aegis Asset Management predicted that how individual assets respond to optimization and differentiation in the commercial real estate market in 2025 will be key to investment competitiveness.
Aegis Asset Management assessed that changes in tariff, trade, and immigration policies following the inauguration of the second administration of Donald Trump could exert inflationary pressure on the global market. It stated that the volatility of the global market could increase in conjunction with interest rates and dollar policies.
Aegis Asset Management anticipated that political uncertainty could continue until the first half of 2025, causing fluctuations in exchange rates and capital markets. It also suggested that foreign capital may seek higher revenue, leading to liquidity concentration and demand shrinkage.
According to the report, the transaction volume in the domestic office market is expected to remain at the levels of 2023-2024, and price adjustments may occur mainly in small assets and non-performing assets. As corporate revenue shrinks and rent growth slows down, the investment trend is likely to shift from capital gains to stable income gains. Thus, funds are expected to flow into high-quality assets, including "trophy assets."
The logistics market is also expected to see increased transaction polarization as household consumption slows and cost pressures demand efficiency and profitability. The hotel market may experience some decline due to political uncertainty, but there is potential for additional growth due to the base effect of exchange rates.
The research team at Aegis Asset Management presented a diversified approach as the investment strategy for 2025. In traditional real estate markets such as offices and retail, investment will focus on stable core assets, while essential asset investments like rental housing will seek to achieve economies of scale. High-growth assets such as data centers and life sciences will require the expertise of asset managers.
Choi Ja-ryeong, head of the research team at Aegis Asset Management, said, "To secure competitiveness in markets with high market volatility and funding hurdles, it is necessary to choose and concentrate on assets," adding that "it is important to capture investment opportunities linked to growth industries in line with market changes focused on demand."