When the Dam Bursts: Asia's REIT Renaissance

Investors across Asia Pacific are harnessing the REIT wave. These are the CRE updates you won't want to miss.

China has broken ground on the largest hydroelectric dam the world has ever seen—it'll generate ten times more power than the U.S.'s Hoover Dam and match the energy consumption needed to power the United Kingdom. Part of a $167 billion USD stimulus push on a tried-and-true growth lever (and tangentially connected to Beijing's 2060 commitment to carbon neutrality), this infrastructure investment is one tile of Asia’s complex capital markets mosaic.

China has taken steps since 2020 to pilot infrastructure REITs; unlike traditional REITs that focus on offices or retail, infrastructure REITs package things like utility systems and logistics hubs. They have a double impact, delivering core, long-term cash flow when bundled into vehicles like REITs and act as a value catalyst for surrounding assets. That's not to say that every project is suitable for REIT investment, but it does create an intriguing way for investors to get involved further upstream in the built environment.

The overall Chinese REIT market is up 85% year-on-year, and infrastructure REITs are growing. The country’s real estate capital flow is leaning toward consumer utilities, energy and water systems. Read our full workup on Asia's top REIT markets.

India’s playing the same game, just with different equipment. While its REIT market remains young (just four listed across office and retail), it now spans over 105 million square feet and is growing fast, thanks to demand from Global Capability Centers and multinational tenants. The Knowledge Realty Trust IPO is looming, and SM-REITs (small and mid-sized REITs) now open the door to fractional ownership—like a slice of a stabilized office tower instead of the whole thing.

With 48 million sf of Grade A office space, Suvishesh Valsan expects to see KRT become one of the largest real estate investment trusts listed in India. Get our take on India's capital markets scene.

What's better than a side of fries while you charge your car? Elon Musk's thoughts exactly. The Tesla Diner, a retro-themed diner and drive-in theater, opened this week in LA. While it looks like a set from Back to the Future, it’s very much a play from the future of retail.

The Tesla Diner is part of a larger wave of companies investing in brick-and-mortar, high-concept spaces designed to generate cultural capital, deepen customer loyalty, and anchor a brand universe IRL. From Google’s first physical stores to Glossier’s sensory pop-ups, this is the age of experiential infrastructure. Dive into the experiential economy.

🔎 Other ideas we're watching

Happiness equals reality minus expectations CRE has apparently had enough of sitting on the sidelines waiting for rate cuts. Unlike the second half of 2024, investors and lenders today have adjusted their expectations, says Abby Corbett, CRE for PENSION REAL ESTATE ASSOCIATION (PREA). With rate stability becoming the new base case, capital is flowing again —investors are refocusing on deal structures and longer-term strategy instead of hyper-focusing on short-term movement. Read Abby's full commentary in the Summer 2025 edition.

Trump switches gears Auto stocks surged this week once the White House announced a tariff deal with Japan. The deal cuts rates in half and promises $550 billion toward a Japanese investment package. Find out how domestic and foreign automakers are responding to their individual tariffs as we roll toward the August 1 implementation date.