Commercial Real Estate - Hong Kong

Hong Kong

The Commercial Real Estate market market in Hong Kong is expected to reach a value of HK €0.73tn by 2024.
This projection indicates a significant growth potential for the market.
Furthermore, the market is projected to experience an annual growth rate of 0.81% between 2024 and 2029, resulting in a market volume of HK €0.76tn by 2029.
When compared globally, it is noteworthy that the United States is expected to generate the highest value in the Real Estate sector, with an estimated worth of €23,450.0bn in 2024.
This highlights the strong position of the United States in the global Real Estate market.
Despite the economic challenges faced by Hong Kong, the commercial real estate market remains resilient due to its strategic location and strong demand from multinational corporations.

Key regions: Europe, France, Japan, Brazil, Asia

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Commercial Real Estate market in Hong Kong has been experiencing significant growth and development in recent years.

Customer preferences: In Hong Kong, there is a strong demand for commercial real estate properties due to the city's status as a major global financial hub. Many multinational corporations and financial institutions have established their regional headquarters or offices in Hong Kong, leading to a high demand for office spaces. Additionally, there is a growing trend of co-working spaces and flexible office solutions, catering to the needs of startups and small businesses.

Trends in the market: One of the key trends in the commercial real estate market in Hong Kong is the increasing popularity of Grade A office buildings. These buildings offer modern amenities and facilities, as well as prime locations in the city's central business districts. As a result, they attract high-profile tenants and command higher rental rates. Another trend in the market is the rising demand for retail space. Hong Kong is known for its vibrant shopping scene, with both locals and tourists flocking to the city's numerous shopping malls and luxury retail outlets. As a result, there is a continuous demand for retail spaces, especially in popular shopping districts like Causeway Bay and Tsim Sha Tsui.

Local special circumstances: Hong Kong's limited land supply is a unique characteristic that impacts the commercial real estate market. With limited space available for development, there is a scarcity of prime commercial properties, leading to high competition and increased property prices. This scarcity also drives developers to repurpose existing buildings or convert industrial buildings into commercial spaces.

Underlying macroeconomic factors: Several underlying macroeconomic factors contribute to the development of the commercial real estate market in Hong Kong. The city's strong economic growth, stable political environment, and favorable business climate attract both local and international investors. Additionally, Hong Kong's position as a gateway to Mainland China and its proximity to other major Asian markets make it an attractive location for businesses seeking to expand their operations in the region. Furthermore, low interest rates and ample liquidity in the market have encouraged investors to invest in commercial real estate properties, driving up demand and prices. The government's supportive policies and initiatives to attract foreign investment and promote economic development also contribute to the growth of the commercial real estate market in Hong Kong. In conclusion, the Commercial Real Estate market in Hong Kong is experiencing significant growth and development due to customer preferences for modern office spaces and prime retail locations. The scarcity of land and high competition drive up property prices, while underlying macroeconomic factors such as strong economic growth and government support further contribute to the market's expansion.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.