On 8 january, this newspaper (journalist lendt) published a study reviewing the beijing real estate market in 2025 and looking ahead to the market in 2026。
Reports indicate that in 2025, the renewal of the lease in the beijing office market was gaining dominance and tenants ' bargaining power was increasing. The investment market experienced a marked decline in bulk trade throughout the year and increased attention to commercial retail assets in the four quarters. The overall demand release of retail property has been hampered, and increased fragmentation of market performance has placed higher demands on the project's ability to operate. Industrial logistics markets have been profoundly adjusted under the double pressure of increased supply concentration and continued weakening of end demand. High-end hotel markets faced the challenge of falling prices and slow recovery of revenues in the second half of 2025, but market demand remained on track。
From beijing, rent adjustments continue to deepen and market pricing transparency is further enhanced. The current bargaining power of tenants is historically high and the original offer of the owner is closer to the actual achievable level. Zhang shun, senior director of the commercial estates department in beijing, also stated: “although the rent adjustment tempo may slow down, the market will maintain a tenant-dominated pattern and, for owners, the rate will continue to take precedence over the pursuit of rent growth.”
In terms of the commercial real estate investment market, the commercial real estate market in beijing slowed down in 2025, further weakening its dynamism in the fourth quarter. The total volume of bulk deals in beijing throughout the year was about 18 billion yuan, 58 per cent lower than in 2024. Commercial retail assets are relatively more capital-oriented in terms of asset classes. Private buyers and venture capital institutions are the main investors in terms of the investment portfolio。
It is worth noting that the scope of public collection of reits ' lower-level assets has recently increased to commercial office and hotel projects. The csrc recently issued the csrc bulletin on the launch of the commercial real estate investment trust (bip) pilot. It is also believed that this is expected to significantly improve the market liquidity of the assets concerned, boost asset inventory and ease the liquidity pressure on some asset holders. The director of investment and capital markets operations in the china district and head of the north china region, xu sisi, stated that the further expansion of the public collection reits market would facilitate the accelerated transition of the commercial real estate sector to a sophisticated asset management model and would provide a liquidity premium for core and resilient projects。
From the hotel market, liangtao, senior vice-president of the ministry of hotels and tourism estates of the greater central china region, stated: “the beijing hotel market faced the challenge of falling prices and slow recovery of revenues in the second half of 2025, but market demand remained on track, thanks to the continued optimization of the customer structure and the changing consumption power. The hotel's path as a bottom asset of reits is becoming clearer and, in order to meet listing requirements, the optimization of asset management and operating cash flow management will receive increasing attention, resulting in a genuinely `integrated, built, managed' hotel investment loop that will enhance the liquidity and financial leverage of quality assets. At the same time, the steady advance in the securitization of hotel assets will also push asset holders to pay greater attention to the long-term value of assets and sustained robust performance and provide new investment opportunities for investors.”
(editor yellow)
