The GDP recovery in Asia should be strong in 2010, but inflationary pressures are rising in most Asian economies, bringing about the prospect of higher interest rates and upward pressure on Asian currencies. 

According to the report by Aberdeen Property Investors, current buyer preference is for well located stable assets, helping most prime markets to find the bottom of their cycles. 

Secondary markets will lag this recovery. 

Occupational demand will shift from a wait and see approach to a more active stance, resulting in some mild rental pressure the year end. 

Glyn Nelson, head of research and investment strategy - Asia Pacific, says: “We prefer the emerging markets over the medium to long term.  However, mature market repricing has led to some tactical opportunities."