Global real estate transaction volumes will remain high in the Asia Pacific across the next two years to outperform Europe and the Americas, JLL says.

According to the real estate consultancy, foreign investments into the region are at a decade-high, making up 35 per cent of total volumes, mostly driven by private equity funds and large-scale transactions.

JLL Asia Pacific Capital Markets CEO Stuart Crow said more clients were making larger-scale investments to expand their portfolios due to the increasing amount of capital allocated to real estate.

“Real estate in the Asia Pacific has gained favour in the last year as investors continue to seek high yields and stability amid a climate of geopolitical uncertainty and slowing economic growth," he said.

JLL Indonesia Head of Research James Taylor. Source: JLL

Data from JLL indicated investment in Asia Pacific real estate reached US$125 billion in the first three quarters of 2019, up 10 per cent year-on-year.

JLL Indonesia Head of Research James Taylor said the market was expected to remain elevated in 2020, with Jakarta continuing to draw interest from foreign investors.

“International investors remain extremely active in Indonesia," he said.

"Groups from Japan, Singapore, Hong Kong and other key markets from around Asia Pacific remain interested in all major real estate sectors but we receive most interest in logistics and residential.

"Jakarta and Greater Jakarta tend to be the focuses of investors entering the market for the first time while groups with an existing presence may explore other locations such as Surabaya in East Java."

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