C&W research shows C-REITs overtaking Hong Kong to be number three in Asia's REIT sector by market cap after Japan and Singapore, with India catching up in fifth position.

China and India’s REIT markets showed robust growth in 2024 and are expected to continue to attract strong investor interest this year, according to Cushman & Wakefield’s "Asia REIT Market Insight 2024-2025" report.

The annual report revealed that the C-REIT market achieved a remarkable 85% increase in market value at the end of 2024, surpassing Hong Kong and becoming one of the region’s top three REIT markets. In the same period, India’s REIT market demonstrated robust growth in the office sector, driven by strong leasing demand for institutional-grade office space. 

Cushman & Wakefield’s data showed a total of 263 active REIT products in the Asia market as of Dec 31, 2024, with a combined market value of US$235.8 billion, reflecting a y-o-y decline of 6.5%. The contraction was primarily driven by declines in the US dollar values of the Japan, Singapore and Hong Kong markets due to the widespread softening in REIT stock prices and unfavorable exchange rate movements. 

Amid these declines, the Chinese mainland REIT market emerged as a bright spot, posting an impressive 85% y-o-y rise in market value, attributable to new REIT product issuances and strong investor demand for infrastructure-backed assets.

In the mature markets, Japanese REITs experienced significant gains in dividend yield, led by stock price moderation and asset performance improvements, particularly among hotel REITs, which benefitted from inbound tourism.

In Singapore, positive total returns were observed across multiple property types in 2024, including data centres at 9.7% and healthcare at 6.9%.

Elsewhere in Asia, Thailand demonstrated robust performance with a 41% increase in market value, marking it as the second-highest growth market in the region.

The Philippines, Malaysia and India reported increases of 37%, 21% and 13% respectively, supported by their favorable economic fundamentals and attractive real estate sectors.

The year 2024 saw a breakthrough in C-REIT issuance with 29 new REIT products, including 19 real estate-backed REITs. This represented the highest annual issuance recorded to date.

Among product categories, consumer infrastructure REITs led the issuance count with seven new listings, followed by industrial park REITs with six launches.

Heading into 2025, the market has maintained its robust trajectory with six REITs launched in 1Q2025, including five real estate-backed products. As of March 31, a total of 64 public infrastructure REITs were listed in the Chinese mainland.