Global Trade Tensions Take a Toll, But India's Commercial Real Estate Remains Unyielding: Findings Revealed
Rewritten Article:
Asia-Pacific commercial real estate is on a roll, with market demand holding strong, particularly for office space, according to a recent Cushman & Wakefield report.
Boasting a whopping 20% surge, the first quarter of 2025 saw a record net absorption of 26 million square feet of office space across the region, compared to 22 million square feet in the same period last year.
The region's allure lies in its attractive yields and a resilient US dollar, which has led to a surge in global capital flowing into APAC real estate, with sectors like logistics, data centers, and multifamily reaping the benefits.
Lower interest rates also promise a boost to investments in commercial real estate. Yet, manufacturers exporting to the US could be the casualties of potential trade wars, as the evolving tariff situation poses a threat. However, industrial hubs in Southeast Asia and India are benefiting from ongoing supply chain diversifications, despite ongoing trade tensions.
Manufacturers are actively rethinking their supply chain designs, seeking opportunities for further optimization.
The report notes that the first 100 days of US President Donald Trump's second term have introduced significant volatility in global markets, particularly around U.S. trade, tariffs, and deregulation. However, Asia-Pacific's economy and property markets show resilience, buoyed by domestic drivers and strong market fundamentals.
Dominic Brown, Head of International Research at Cushman & Wakefield, emphasizes the importance of staying agile and adjusting strategies swiftly in response to market fluctuations. Though APAC entered 2025 with robust momentum, the report expects growth to moderate due to policy turbulence and a cautious business approach.
Despite these economic uncertainties, APAC remains a ripe territory for occupiers and investors, poised to recover swiftly once global clarity emerges.
While the report does not provide specific numbers for demand and absorption rates for commercial real estate in key Asian markets like India, it highlights a growing global investor appetite for office assets. In Q1 2025, office assets dominated transaction volumes[2]. For a more comprehensive analysis, detailed reports from Cushman & Wakefield or similar sources would be beneficial.
As for India's office real estate sector, it maintained its performance during Q1 2025, driven by strong leasing and a reduction in vacancy rates[4]. However, this data only offers a glimpse into one Asian market.
- The Asia-Pacific economy and property markets, particularly in sectors like office space, logistics, data centers, and multifamily housing, are expected to exhibit growth in 2025, despite potential trade wars affecting manufacturers exporting to the US.
- Despite economic uncertainties and anticipated growth moderation due to policy turbulence, the Asia-Pacific region remains an attractive territory for investors, with a growing global investor appetite for office assets.
- As the US presidential term enters its second 100 days, sports like football and basketball may experience increased turbulence in the Asia-Pacific region, mirroring the market volatility observed in other sectors, as global economic factors influence consumer spending habits and sponsorship deals.
