South Korea Office Real Estate Market Size (2024 - 2029)

The South Korean office real estate market is experiencing a recovery, with its market size gradually increasing after the disruptions caused by the COVID-19 pandemic. The sector's growth is supported by rising office space absorption, increased leasing activities, and decreasing vacancy rates. Seoul is at the forefront of this market expansion, with a significant portion of commercial property transactions involving office buildings. The demand for prime office spaces remains strong, driven by new organizations and expansions, contributing to the overall growth in market size.

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Market Size of South Korea Office Real Estate Industry

South Korea Office Real Estate Market Growth
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.00 %
Market Concentration Low

Major Players

South Korea Office Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Korea Office Real Estate Market Analysis

The South Korean office real estate market is expected to register a CAGR of more than 5% during the forecast period (2022-2027).

The COVID-19 pandemic affected the office real estate market in South Korea due to restrictions, social distancing policies, and work-from-home culture. Though the market is in a recovery phase, it is yet to reach the pre-pandemic levels. The growth of the sector is driven by increasing office space absorption, growth in leasing activities, declining vacancy rates, etc.

Seoul is emerging as a leader in the office real estate sector. Office buildings accounted for more than 70% of commercial property transactions in Seoul during Q2 2021. In addition, office building prices in Seoul experienced robust growth in Q2 2021, driven by increasing investments from domestic investors. Take-up of prime office spaces remained high in the country during Q3 2021. Most of the prime office spaces are absorbed by new organizations (with 27% absorption), secondary to prime (with 35% absorption), prime to prime (19%), and expanding existing organizations (20%).

South Korea Office Real Estate Industry Segmentation

Office real estate refers to the construction of buildings for leasing and selling purposes to companies from different sectors. The report aims to provide a detailed analysis of the South Korean office real estate market. It focuses on market insights, dynamics, technological trends, and government initiatives.

The market is segmented by sector and key city. The report offers market size and forecast in value (USD billion) for all the above segments.

By Sector
Information Technology (IT and ITES)
Manufacturing
BFSI (Banking, Financial Services, and Insurance)
Consulting
Other Services
By Key City
Seoul
Incheon
Busan
Other Cities
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South Korea Office Real Estate Market Size Summary

The South Korean office real estate market is experiencing a recovery phase following the disruptions caused by the COVID-19 pandemic, which had led to restrictions and a shift towards remote work. The market is now witnessing increased office space absorption, a rise in leasing activities, and a decline in vacancy rates, indicating a positive growth trajectory. Seoul is at the forefront of this recovery, with office buildings constituting a significant portion of commercial property transactions. The demand for prime office spaces is particularly strong in Seoul, driven by new organizations and expanding existing ones. Major business districts such as the Central Business District, Gangnam Business District, and Yeouido Business District are seeing substantial absorption of prime office spaces, with vacancy rates declining and net absorption increasing.

The market is characterized by a fragmented landscape where large companies leverage financial resources, while smaller firms compete by honing local market expertise. Notable players in the market include Hines, Brookfield Asset Management Inc., and Keangnam Enterprises Ltd. The pandemic's impact on the market has been significant, but the recovery is marked by rising rental prices and increasing demand from tech tenants, particularly in areas like Gangnam, the CBD, and Yeouido. The rental prices in Seoul and Gyeonggi provinces are among the highest in the country, reflecting the growing demand for office spaces. Companies like Brookfield and Hines are expanding their presence in the region, indicating a robust outlook for the South Korean office real estate market.

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South Korea Office Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Government Regulations and Initiatives

    4. 1.4 Supply Chain/Value Chain Analysis

    5. 1.5 Porter's Five Forces Analysis

    6. 1.6 Technological Innovations in Office Real Estate Market

    7. 1.7 Impact of Remote Working on Space Demand

    8. 1.8 Insights into Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Information Technology (IT and ITES)

      2. 2.1.2 Manufacturing

      3. 2.1.3 BFSI (Banking, Financial Services, and Insurance)

      4. 2.1.4 Consulting

      5. 2.1.5 Other Services

    2. 2.2 By Key City

      1. 2.2.1 Seoul

      2. 2.2.2 Incheon

      3. 2.2.3 Busan

      4. 2.2.4 Other Cities

South Korea Office Real Estate Market Size FAQs

The South Korea Office Real Estate Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

Brookfield Asset Management Inc., Hines, Arup, Keangnam Enterprises Ltd and SK D&D Co. Ltd are the major companies operating in the South Korea Office Real Estate Market.

South Korea Office Real Estate Market Report Snapshots

South Korea Office Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)