Foreign investors purchased US$ 3.2 billion worth of Korean commercial real estate in 2018, an increase of 14% y-o-y. While investment in retail properties fell marginally, purchases of logistics assets increased by 73% y-o-y.
Investment from UK-based capital increased significantly, mainly due to a very large transaction involving a prime office building in the CBD.
Greater competition and regulation in the domestic market prompted more Korean investors to consider overseas markets in 2018. Outbound investment volume totalled US$ 7.4 billion, an increase of 14% y-o-y.
More than 80% of Korean outbound real estate investment in 2018 was directed into assets in Europe. Investment in the UK more than doubled as purchasing activity was facilitated by relatively low interest rates and hedging costs.