South Korea heads toward growth

Despite a recent upsurge of COVID-19 infection cases in the country, South Korea has gained a strong foothold on the economic recovery in 2021, according to DWS in its South Korea Real Estate Market Annual Report for 2021.

After expanding more than 10 times in two years, the size of the listed REIT market tripled in 2020, driven by the additional listings of six REITs, with another six REITs planning IPOs in 2021 and beyond.

Transaction cap rates in Seoul have compressed significantly on the back of strong investment demand from domestic investors, with transaction volumes breaking records for the fifth consecutive year.

Owing to the country's success in avoiding a full-scale lockdown, the office leasing market in Seoul showed resilience, while demand in quality logistics space remained strong, posting healthy growth.

In 2020, South Korea ranked 15th globally for inbound real estate investment, with $3.2 billion of cross-border investment. The United Stat