For many institutional real estate investors, Asia has always been a contradiction of sorts. On one hand is the allure of new markets, which offer investors a chance to supercharge returns, diversify geographically and round out their portfolio allocations. On the other hand, barriers to entry, both real and perceived, have been legitimate obstacles that have kept some investors on the sidelines or in markets on familiar turf. Yet the siren song of the vast Asia Pacific real estate markets is simply too great to ignore for institutions. In fact, there is a compelling argument to be made that right here and right now we are witnessing a major secular shift in the dominant engine that will power future generations of the global economy.

Fundamental changes are now under way that suggest most Asia Pacific property markets — which are largely categorized as “emerging” by institutional investors right now — may one day become a centerpiece of any core portfolio.