Beijing’s upbeat start to 2021 has heightened expectations for the coming decade. As China’s capital city and a magnet for talent and resources, Beijing is already firmly established as a nationwide leader in modern services and the innovative economy. The coming years will see authorities focus on improving hardware and software infrastructure and cultivating new business models and industries, creating new growth engines for commercial real estate development in the years to 2030.

 

LONG-TERM GROWTH STRATEGY

The next ten years will see the emergence of new commercial real estate growth engines as Beijing leverages its capital city status, large talent pool and rapidly expanding innovative industries. With Beijing’s innovation-driven economic model reliant upon attracting and retaining talent, environmental sustainability will be a decisive factor. The completion of numerous key infrastructure projects in the coming years will drive the integrated development of the Jing-Jin-Ji area.

 

THE FUTURE WORKPLACE

Flight-to-quality activity is becoming more prominent in Beijing’s office leasing market, with significant upgrading demand involving relocation and expansion. Finance and TMT will continue to serve as the main drivers of demand, with individual submarkets set to emerge as preferred locations for certain companies and sub-sectors. As occupiers consider a wider range of office locations, emerging submarkets are developing rapidly.

 

LONG-TERM INVESTMENT STRATEGY

Investment in urban renewal projects has been rising since 2017 and is set to continue in the years to 2030, driving up liquidity across multiple asset types in core areas. While transaction volume in emerging markets has grown significantly over the last two years, this is still substantial room for growth. Logistics and data centre investment will be characterised by redevelopment within Beijing and new development in the pan-Beijing area.