Global capital is pouring into APAC real estate at a growing rate due to the high value of the U.S. dollar and comparatively enticing yields in the region. Space-like logistics, data centres, and multifamily homes remain in favour with institutional investors looking for stability and long-term gain.
“The downward trajectory in interest rates will only add momentum to this trend,” the report states, signaling further investment inflows into commercial real estate through the rest of the year.
The report also refers to continuing uncertainties in international trade policies, in particular from U.S. hardline tariff changes in the second term of President Donald Trump. These added to volatility, particularly for manufacturing industries dependent on export to the U.S.
However, this turbulence is indirectly fueling growth in industrial hubs across Southeast Asia and India, where manufacturers are increasingly relocating or diversifying operations to reduce risk. As companies reevaluate their global supply chain strategies, the long-term outlook for APAC industrial real estate remains positive.
Domestic Fundamentals Power APAC Property Resilience
Despite the geopolitical tensions, Cushman & Wakefield believes that APAC property markets are solid on the back of robust domestic demand, urbanisation, and continued infrastructure investment.
“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,” noted Dominic Brown, Head of International Research at Cushman & Wakefield.
He advised that occupiers and investors should stay agile and responsive, adapting their strategies to take advantage of future recovery waves.
Cautious Optimism as APAC Enters 2025 with Momentum
Entering 2025, APAC’s real estate sector started with strong momentum. However, policy uncertainty and cautious business sentiment are expected to moderate decision-making and growth, the report cautions.
Still, with resilient macroeconomic drivers, a youthful population, and rapid digital adoption, Asia-Pacific remains among the most attractive global regions for real estate investments.
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