+
Asia Pacific Commercial Real Estate Stays Resilient Amid Volatility
Real Estate

Asia Pacific Commercial Real Estate Stays Resilient Amid Volatility

Hard policy shifts during the first 100 days of President 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, according to Cushman & Wakefield’s report, Trump 2.0: The First 100 Days – Implications for the APAC Economy & Property Markets.
The report offers a comprehensive look at how policy shifts under the new administration are reshaping the global economic landscape, with a particular focus on the Asia Pacific (APAC) region. It highlights rising uncertainty stemming from the changes to U.S. trade, taxation, and deregulation policies, which have already impacted economic confidence globally, with the APAC region facing varied implications. 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.
"Uncertainty has been the dominant theme of the first 100 days," said Dr Dominic Brown, Head -International Research, Cushman & Wakefield. "While periods of heightened uncertainty typically dampen business and investment confidence, Asia Pacific’s strong fundamentals are helping to cushion the impact. Real estate markets in the region remain resilient but delays in decision-making by businesses and investors as they navigate the uncertainties are key risks in the near term.”

Key highlights from the report include:
  • Slower growth outlook: Rising U.S. recession risks and signs of stagflation point to softer global growth in 2025. However, stronger U.S. performance is anticipated in 2026, which could provide future tailwinds for APAC.
  • Trade disruption: 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.
  • Real estate resilience: 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. Net absorption of office space across APAC in 1Q 2025 is approx. 26msf, a 20% year-on-year increase (1Q 2024 = approx. 22 msf). 
  • Global capital flows: 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.  
“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,” noted Dr Brown. 

Hard policy shifts during the first 100 days of President 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, according to Cushman & Wakefield’s report, Trump 2.0: The First 100 Days – Implications for the APAC Economy & Property Markets.The report offers a comprehensive look at how policy shifts under the new administration are reshaping the global economic landscape, with a particular focus on the Asia Pacific (APAC) region. It highlights rising uncertainty stemming from the changes to U.S. trade, taxation, and deregulation policies, which have already impacted economic confidence globally, with the APAC region facing varied implications. 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.Uncertainty has been the dominant theme of the first 100 days, said Dr Dominic Brown, Head -International Research, Cushman & Wakefield. While periods of heightened uncertainty typically dampen business and investment confidence, Asia Pacific’s strong fundamentals are helping to cushion the impact. Real estate markets in the region remain resilient but delays in decision-making by businesses and investors as they navigate the uncertainties are key risks in the near term.”Key highlights from the report include:Slower growth outlook: Rising U.S. recession risks and signs of stagflation point to softer global growth in 2025. However, stronger U.S. performance is anticipated in 2026, which could provide future tailwinds for APAC.Trade disruption: 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.Real estate resilience: 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. Net absorption of office space across APAC in 1Q 2025 is approx. 26msf, a 20% year-on-year increase (1Q 2024 = approx. 22 msf). Global capital flows: 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.  “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,” noted Dr Brown. 

Next Story
Infrastructure Energy

WattPower, First Solar Host Solar Connect to Boost Agri-Solar in Telangana

WattPower, a renewable energy solutions provider, in collaboration with First Solar, hosted a high-level industry roundtable titled ‘Solar Connect’ at Vivanta, Hyderabad. The event focused on advancing agri-solar deployment in Telangana under the PM-KUSUM scheme. The session brought together policymakers, clean energy experts, and project stakeholders to address the core challenges in scaling agri-solar infrastructure. The agenda included technical presentations by both companies and a panel discussion moderated by Pavit Gandhi, Director, Sales, WattPower. The panel, titled “Un..

Next Story
Infrastructure Urban

PM Modi to Launch Rs 12 Billion Projects in Bihar, Rs 5 Billion in West Bengal

Prime Minister Narendra Modi will visit Bihar and West Bengal on Friday to launch a series of development projects worth over Rs 17 billion, aimed at strengthening infrastructure, connectivity, and socio-economic growth in the two states.Projects in BiharIn Bihar, the Prime Minister will lay foundation stones, inaugurate, and dedicate projects spanning rail, road, rural development, fisheries, electronics, and information technology sectors.He will inaugurate multiple rail projects, including the automatic signalling system on the Samastipur-Bachhwara rail line for improved train operations. T..

Next Story
Infrastructure Transport

IRCON Secures Rs 1.87 Billion in Major Mumbai Metro and Rail Contracts

State-owned engineering firm IRCON International Limited announced on Friday, 18 July, that it has secured three major infrastructure contracts worth over Rs 1.87 billion. The awards include two contracts for Mumbai Metro projects from the Mumbai Metropolitan Region Development Authority (MMRDA) and one railway project in Madhya Pradesh from Rail Vikas Nigam Limited (RVNL).IRCON received a Letter of Award from RVNL for a railway infrastructure project valued at Rs 756 million (inclusive of GST) in Madhya Pradesh. The contract was awarded to the IRCON–JPWIPL joint venture, where IRCON holds a..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?