In 2025, Korea’s economic growth is projected to remain around 1% as domestic and global political uncertainties continue to weigh on the outlook. Although the government has introduced rate cuts and policies to stimulate domestic consumption, spending momentum remains weak.
In the 2026 investment market, expectations of further rate cuts are anticipated to sustain the increase in office investment seen in 2025. As routine consumption increasingly shifts online, consumers continue to seek differentiated offline experiences, driving a widening polarization among retail assets and high-street districts. Grade A offices in the major business districts are leading the market with low vacancy levels in the 4% range, while foreign investor interest in logistics centers and hotels continues to grow. Although the data center and living sectors remain relatively small, they are emerging as compelling alternative asset classes for investors pursuing portfolio diversification. In the domestic housing market, a potential shift in tax policy under a new administration introduces additional variables, requiring both institutional understanding and a flexible approach.
Cushman & Wakefield’s year-end outlook report for 2025 reflects on this year’s market dynamics and provides insights for the year ahead, covering investment trends, office, logistics, hotels, retail, data centers, living sectors, as well as broader economic and policy developments.
