Despite global trade stress, India’s commercial real estate strong- report | India’s Commercial Real Estate Remains Strong Despite Global Trade Tensions

According to the report of Kushman and Wakefield released on Wednesday regarding the Asia-Pacific region, the demand of the occupation and investor for commercial real estate has been rapid. According to the report, office space absorption continues in major markets like India, Indonesia and Philippines. The report said that in the first quarter of 2025, the Net Absorption of Office Space in Asia-Pacific (APAC) increased by 20 percent from 22 million sq ft (MSF) of the same quarter of the same year to 26 MSF.

Initial rates will increase in investment

US dollar strengthening and attractive yield APACs are increasing global capital flow in real estate. This capital flow is particularly recorded in sectors such as logistics, data centers and multitamili. According to the report, the fall in interest rates will also promote investment in commercial real estate sector. The manufacturing sector exporting to the US is at the most risk due to changes in tariff positions and potential trade wars.

Despite the continuation of trade tension, industrial centers in Southeast Asia and India are benefiting from diversification in its supply chain. The report states that the manufacturers will continue to evaluate the design of their supply chain and seek further opportunities for adaptation. It is worth noting that according to the report, strict policy changes during the first 100 days of US President Donald Trump’s second term have created a situation of instability in the global markets.

Strong performance of markets despite global economic uncertainty

Despite these growing global economic uncertainties, the Asia-Pacific economy and property markets are displaying strength based on domestic drivers and strong market foundations. Dominic Brown, head of international research at Kushman and Vacfield, stated that the risks are clearly increased, although historical trends suggest that Asia-Pacific’s property markets are in good positions to return rapidly. Therefore, it is necessary to adjust your strategies quickly, showing the occupiers and investors quickly so that they can take advantage of it when there is a wave of improvement.

(This news has not been edited by the NDTV team. It has been published directly from the syndicate feed.)