Seoul office investment expected to stay robust in 2026

The strong demand for core assets will support office investments in the city.

Seoul’s office investment market is expected to remain resilient in 2026, supported by continued activity from corporates acting as strategic investors and owner-occupiers, according to Savills.

Savills said these buyers are likely to play a stabilising role, given their flexibility in capital deployment and focus on occupier-driven needs such as headquarters acquisitions and operational consolidation. Their presence is expected to provide pricing support and execution certainty, creating favourable conditions for co-investing financial institutions.

Liquidity is also forecast to remain strong, underpinned by domestic institutional capital. Major investors including National Pension Service and Korea Post continue to raise blind funds, sustaining investment capacity. Savills added that stable senior loan rates, amid a prolonged base-rate hold, should further support transaction activity.

As of January, several deals are already underway or nearing completion, while more assets are expected to come to market as funds approach maturity. As a result, Savills projects total office investment volumes in 2026 to remain broadly in line with 2025 levels, with potential for modest upside.

Effective capitalisation rates, adjusted for rent-free incentives, are expected to hold in the low-4% range. Savills noted that both strategic and financial investors will likely remain selective, focusing on assets with strong fundamentals and durable income, which should help contain cap rate volatility.