CBRE Korea: Foreign Investment in Korean Commercial Real Estate Reaches USD 2.8 Billion in 2024, Fully Recovering to Pre-Pandemic Level

- Inbound investment driven by U.S. and Singaporean capital expands across office, logistics, and hotel sectors
- Outbound investment hits record low at USD 380 million, with strategic activity focused on the U.S. and Japan

Jun 9, 2025 (Seoul) – CBRE Korea, the world’s largest commercial real estate services company, announced through its “In & Out Korea 2024” report that foreign capital inflows into Korea’s commercial real estate market totaled USD 2.8 billion in 2024, fully recovered to pre-pandemic levels. This marks a 23% year-on-year increase year-on-year and is the highest annual inbound investment since 2019, when the figure stood at USD 2.5 billion.

The United States and Singapore maintained their positions as the top two sources of inbound capital, collectively accounting for 84% of total foreign investment in 2024. U.S.-based investment surged by approximately 52% compared to the previous year, hitting its highest level since 2017. Singaporean capital also increased by more than 35%, with continued focus on the office and logistics sectors. Notably, China reentered the top three for the first time since 2017, driven by a strategic investment in K Square City, a Grade A office asset in Seoul’s central business district.

By asset type, office properties attracted the largest share of inbound capital at USD 1.25 billion (45%), followed by logistics at USD 920 million (33%) and hotels at USD 510 million (18%). Office investment more than doubled from the previous year, recording a 109% increase, supported by the resurgence of core asset transactions in major districts and value-add deals in emerging submarkets such as Sangam. In the logistics sector, value-add investments anticipating rental growth—such as in the Seonggwang Logistics Center in Gimpo and Daedeok Logistics Center—were accompanied by the acquisition of NPLs related to assets that had triggered events of default (EOD).

Interest and investment in hotel assets among foreign investors also increased. Japanese capital was deployed in the acquisition of the Conrad Hotel, while U.S.-based Angelo Gordon acquired the Tmark Grand Hotel, which has since reopened as Voco Seoul Myeongdong. The uptick in foreign tourist arrivals contributed to heightened expectations for improved hotel performance, spurring investor activity.

In contrast, outbound investment by Korean capital into overseas commercial real estate plummeted to USD 380 million in 2024, marking a 48% year-on-year decline and the lowest annual total on record. The drop is attributed to heightened geopolitical risks, increased foreign exchange volatility, and concerns over the performance of previously acquired assets. Europe, which had accounted for more than half of Korean outbound investment prior to the pandemic, saw no new investments from Korean capital between 2023 and 2024.

Outbound investment in 2024 was largely concentrated in Japan and the United States. Japan ranked as the top destination, with acquisitions of residential and office properties in Tokyo. The United States, previously the leading outbound market, came in second, with investments made in strategic locations such as New York, California, and Arizona. Despite the overall downturn, Korean outbound capital in 2024 shifted from sector-specific investments to a more diversified portfolio across office, logistics, retail, and residential properties.

Claire Choi, Senior Director, Head of Research at CBRE Korea, stated, “Inbound investment in 2024 has returned to pre-pandemic levels, and the diversification of both asset types and investor origins reflects growing confidence in the Korean market among foreign investors. However, outbound investment remains muted, highlighting the importance of strategic decision-making amid ongoing global market uncertainties.”