Market reports from CBRE, JLL, Savills, and Cushman & Wakefield suggest that certain Asian markets are poised for strong activity and growth over the next year. The following highlight these key markets, examining the factors propelling their CRE sectors forward.
1. India: Rising Giants – Mumbai, Bangalore, and Delhi
Growth Drivers:
India’s commercial real estate market is expected to maintain robust growth through 2025, with tech hubs like Bangalore, financial centres such as Mumbai, and political capital Delhi leading the way.
Reports from CBRE and JLL predict that India will continue to attract global corporations due to its booming technology sector, increased foreign direct investment (FDI), and strong government initiatives promoting infrastructure and urbanisation.
Key Sectors:
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- Office Space: According to JLL, India saw a record-breaking leasing activity in 2023, and this trend is expected to continue as more tech companies and global service providers expand operations.
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- Industrial and Logistics: Driven by the e-commerce boom, Savills predicts that India’s industrial and logistics market will flourish in 2025, particularly in cities like Mumbai and Delhi, where demand for modern warehouse space is surging.
2. Singapore: Asia’s Financial Powerhouse
Growth Drivers:
Singapore remains one of the most attractive markets for CRE investment due to its status as a global financial hub, political stability, and strategic location.
Reports by Savills and Cushman & Wakefield underscore Singapore’s resilience in the face of global economic challenges, with strong demand for office and industrial spaces.
Key Sectors:
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- Office: Singapore continues to see robust demand for Grade A office space, particularly in the Central Business District (CBD). According to CBRE, the city-state will experience limited supply of premium office spaces, which will push rents higher, benefiting investors and developers.
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- Data Centres: Singapore has emerged as a key data centre hub in Asia. JLL predicts that this trend will strengthen as companies focus on digital transformation and cloud computing, requiring more data storage infrastructure.
3. Indonesia: The Rise of Nusantara and Jakarta
Growth Drivers:
Indonesia’s commercial real estate market is experiencing a transformative shift with the development of its new capital city, Nusantara. Coupled with Jakarta’s role as a business hub, Indonesia offers a wealth of opportunities for CRE investment.
Cushman & Wakefield’s report highlights the government’s infrastructure drive and economic growth as major drivers of the CRE market.
Key Sectors:
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- Office: As government offices and corporations gradually relocate to Nusantara, demand for Grade A office spaces in both the new capital and Jakarta will rise. Early CRE investors are likely to benefit from the ongoing developments and relocation activities.
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- Logistics and Warehousing: The rise of e-commerce in Indonesia is boosting demand for industrial real estate. According to CBRE, Jakarta’s industrial market is expected to grow as companies seek modern warehouse facilities to meet rising consumer demand.
4. China: Shenzhen, Shanghai, and Beijing
Growth Drivers:
China’s megacities continue to be hotbeds for commercial real estate investment, even as the country faces broader economic uncertainties. Major hubs like Shenzhen, Shanghai, and Beijing are projected to witness strong CRE activity, fuelled by rapid urbanisation, innovation, and tech expansion.
Cushman & Wakefield’s market report points to these cities as primary beneficiaries of China’s “dual circulation” economic strategy, where domestic consumption and foreign investment drive growth.
Key Sectors:
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- Technology Parks: According to JLL, China’s growing tech sector will drive demand for research and development (R&D) parks and tech campuses, especially in cities like Shenzhen, which is often referred to as China’s “Silicon Valley.”
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- Retail: Despite the rise of e-commerce, China’s luxury retail market continues to thrive. High-end shopping malls in Beijing and Shanghai are forecast to perform well, driven by domestic consumption and returning international tourists.
5. Vietnam: Ho Chi Minh City and Hanoi
Growth Drivers:
Vietnam’s real estate market has become a key player in Asia due to its fast-growing economy, young population, and manufacturing prowess. According to CBRE and Savills, Ho Chi Minh City and Hanoi are experiencing rapid CRE development, spurred by foreign investment and a burgeoning middle class.
Key Sectors:
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- Office Space: Vietnam’s office market is expanding, especially in Ho Chi Minh City, where CBRE forecasts strong demand for Grade A offices due to the influx of multinational companies establishing regional headquarters.
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- Industrial and Manufacturing: Vietnam is one of the biggest beneficiaries of the global supply chain shift, with companies relocating from China to take advantage of its competitive labour market. Industrial real estate is booming, with demand for manufacturing and logistics facilities continuing to rise.
6. Japan: Tokyo and Osaka’s Resilience
Growth Drivers:
Japan’s real estate market, particularly in Tokyo and Osaka, remains resilient despite challenges such as demographic shifts.
Reports from Cushman & Wakefield indicate that these cities will continue to be investment hotspots due to their stable economic outlook, mature real estate market, and infrastructure development for the upcoming Osaka Expo 2025.
Key Sectors:
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- Hospitality: With the reopening of international borders, Japan’s hospitality sector is poised for strong growth. According to JLL, Tokyo is expected to witness a surge in hotel development as tourism rebounds and the country prepares for global events.
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- Office: Tokyo’s office market is rebounding post-pandemic, with demand for flexible workspaces and tech-driven office buildings set to rise through 2025.
7. South Korea: Seoul’s Tech-Driven Growth
Growth Drivers:
Seoul is emerging as a key market for commercial real estate, driven by its vibrant technology sector and strong economic performance. According to CBRE and JLL, South Korea’s focus on digital innovation and sustainability is shaping its CRE market.
Key Sectors:
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- Technology and Innovation: Seoul is a leader in digital infrastructure, which will continue to drive demand for tech campuses, R&D centres, and smart office spaces.
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- Sustainability: South Korea’s push for green building initiatives is increasing demand for eco-friendly office developments, which CRE developers are expected to capitalise on in 2025.
In Summary
The commercial real estate market in Asia is set for dynamic growth in 2025, with real opportunity spread across India, Singapore, Indonesia, China, Vietnam, Japan, and South Korea.
CBRE, JLL, Savills, and Cushman & Wakefield all highlight a diverse range of opportunities across office space, industrial logistics, hospitality, and technology-driven developments. Early engagement in these markets, particularly in sectors driven by technological innovation and sustainability, could offer substantial returns in the coming years.
