Growth to outweigh challenges in Asia-Pacific's emerging markets
Indonesia has been ranked as the most efficient and transparent emerging real estate market in the Asia-Pacific region, and the fifth most efficient and transparent emerging real estate market in the world.
Following Indonesia is Thailand which placed 11th overall and second in the region courtesy of impressive scoring within a number of operating conditions parameters.
The Philippines is third within Asia-Pacific and 14th overall, and scores well in a number of the property related parameters with bureaucracy levels making business relatively easy to undertake.
The findings come in Cushman & Wakefield’s second edition of its comprehensive white paper titled Emerging and Frontier Markets: Assessing Risk and Opportunity that evaluates four key risks and ranks 42 countries using a weighted index to determine which markets provide the best opportunity for global expansion.
Bangkok’s office market remains landlord favourable with the highest rental rents centralised in the city, according to the report. Rental rates have continually increased due to strong demand and limited supply.
Thanks to the easy access and extension of the BTS and MRT lines-as most of Bangkok’s office buildings are connected to the stations-daily commute is not affected, hence occupancy rates and rental rates continue to increase. Moreover, with the ASEAN Economic Community coming into effect in 2015, developers have been refreshing their current and future projects to attract tenants.
“Emerging and frontier markets present some of the most significant opportunities for occupiers and investors,” said John Santora, President and Chief Executive Officer of Cushman & Wakefield Corporate Occupier & Investor Services.
”The coming months will bring challenges, but the growth opportunities in most markets should outweigh the risks.”
“Adequate security plans must address the physical asset, the employees, and the company’s information,” said Raymond W. Kelly, President of Cushman & Wakefield Risk Management Services.
“The right plan and protocols begin with pre-occupancy planning and address on-site and off-site security, business continuity, crisis management, and recovery assistance.”