Data centres are the most profitable in Singapore's REIT market in 2023—report

The total return rate for data centres was 19.4% in 2023.

Data centres registered a total return rate of 19.4% in the Singapore REIT Market by property type in 2023, making it the most profitable for the year, according to a report by Cushman & Wakefield.

In Singapore, the iEdge S-REIT total return index for 2023 was at 7%. Based on the data by the SGX, positive total returns were observed across multiple property types in 2023.

Following data centres, industrial and logistics properties were also profitable at 11.3%. This is then followed by healthcare (7.1%) and hotels (2.7%)

In contrast, the retail (-10.6%) and office (24.2%) markets experienced a downward trend last year.

Compared with Hong Kong and Japan, Singapore remained largely stable despite all three experiencing market volatility.

Singapore, Hong Kong, and Japan account for 80% of the total Asia REIT market share.