New Delhi, April 30 (IANS) Occupier and investor demand for commercial real estate remains solid, with office space absorption continuing across key markets such as India, Indonesia, and the Philippines, according to a Cushman & Wakefield report on the Asia-Pacific region, released on Wednesday.
Net absorption of office space across Asia-Pacific (APAC) in the first quarter of 2025 recorded a robust 20 per cent increase to 26 million square feet (msf) from 22 msf in the same quarter last year, the report states.
U.S. dollar strength and relatively attractive yields are driving increased global capital inflows into APAC real estate, particularly into stable sectors like logistics, data centres, and multifamily.
The downward trajectory in interest rates will also boost investments into the commercial real estate sector, according to the report.
With the evolving tariff situation and potential trade wars, manufacturing sectors exporting to the U.S. are most at risk. Nevertheless, ongoing supply chain diversifications are benefiting industrial hubs in Southeast Asia and India even as trade tensions persist.
Manufacturers will continue to evaluate their supply chain design and seek further opportunities for optimisation, the report points out.
The report states that hard policy shifts during the first 100 days of US President Donald Trump’s second term, especially around U.S. trade, tariffs and deregulation, have introduced significant volatility across global markets.
Yet, despite these rising global economic uncertainties, Asia Pacific’s economy and property markets are demonstrating resilience, underpinned by domestic drivers and strong market fundamentals.
Dominic Brown, Head of International Research at Cushman & Wakefield said, “While risks are clearly elevated, historical trends suggest that Asia Pacific’s property markets are well-positioned to rebound quickly once greater global clarity emerges. It is therefore, essential for occupiers and investors to stay nimble and adjust their strategies quickly so as to ride the wave of recovery once it happens.”
While APAC entered 2025 with strong momentum – buoyed by resilient domestic demand and continued investments in real estate – the policy turbulence is expected to moderate growth as businesses adopt a more cautious decision-making approach, the report added.
–IANS
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