Global Investors Seeking Safer Havens in European and Asian Markets

ULI

The closing panel at the 2025 ULI Asia Pacific Summit brought together real estate players from a wide range of geographies and capital markets roles. It featured (pictured) moderator Brian Klinksiek, global head of research and strategy at LaSalle Investment Management; Christina Gaw, managing principal and global head of capital markets at investment manager Gaw Capital; Ian Hawkesworth, CEO of UK real estate investment trust (REIT) Shaftesbury Capital; and Sharon Quinlan, global head of real estate finance at HSBC. The session was held under Chatham House rules.

Audience polling at the start of the discussion revealed that summit attendees expect the world will become more multi-polar after a generation of American exceptionalism, with some audience members believing that the U.S. will fall behind Asia or Europe. As a followup, the audience was asked what global investors should do in these changing circumstances: invest domestically, diversify more? Or be selective and identify potential winners and losers? The response was about evenly split between diversifying and being more “picky.”

The panel noted that increased uncertainty regarding U.S. policy and higher interest rates has driven global investors away from U.S. real estate investments in favor of Europe, in particular the UK, where London is seen as a safe haven. Asia Pacific also offers relative stability and opportunities across many sectors. The region’s resurgence in travel and hospitality since the end of the pandemic has benefited some markets, particularly Japan, while office markets across the region remain strong thanks to a preference for office-based working.

Meanwhile, Asia’s preponderance of mixed-use developments and districts is attractive to global investors seeking to focus on the “live-work-play” theme and benefit from the growth of vibrant districts. One reason for the success of such districts is that many Asian cities have dominant landlords, who own large portfolios and thus can undertake transformative development. The panel also stressed the importance of “walkability” in making a city or district, wherever it is in the world, an attractive place to live, work, and invest.

After a long period of favoring “beds and sheds,” investors are looking at a broader range of sectors, especially in Asia Pacific. However, due to the current global uncertainties, there is also a lot of global real estate capital sitting on the sidelines, waiting for more settled times.

Eyes on China

The panel turned to China, whose real estate markets have been challenging in recent years, mainly due to a difficult residential market. However, panelists felt that it had become easier to dispose of assets due to stronger domestic capital and growing liquidity. Panelists also noted that the depth of domestic capital continued to support the U.S. market, particularly as domestic investors concerned about the global picture would be more likely to stay at home.

In a number of markets across the world, listed real estate companies are trading at a discount to net asset value, which suggests that private equity real estate investors, especially those with long-term horizons, might take advantage by acquiring assets via corporate transactions.

The panel also discussed the prospects for real estate lending around the world, noting that private real estate credit remained relatively rare in Asia Pacific, compared with either the U.S. or Europe. The expectation is for this to change, but only gradually as there is still widespread bank support for real estate and only a limited number of markets where private real estate lending is happening at scale.

In conclusion, the panel of experts was optimistic about real estate prospects in Europe and in Asia Pacific, but agreed with the audience that both diversification and being selective were advisable for global investors.