Asia-Pacific CRE has seen a significant shift in dynamics since the global tech market slowdown in 2022. As 2025 approaches, there will be an increasing focus on sectors that are poised for growth and will likely drive real estate demand in the coming year.
While technology may well make a comeback, it’s advisable to consider the broader spectrum of industries, especially those that have been demonstrating resilience.
Below we explore the most promising sectors for corporate real estate growth, highlighting the potential impact on office, industrial, and specialised real estate, along with examples of organisations driving these changes.
The Decline of Tech and Its Impact
Since 2022, the tech industry has struggled with economic slowdowns, including reduced consumer spending on electronics, ongoing geopolitical tensions, and supply chain disruptions. This has led to a decline in demand for office spaces in tech hubs like Beijing, Bangalore, and Singapore. Many tech firms have scaled back their office footprints or postponed expansions due to financial uncertainty, resulting in subdued activity in the corporate real estate market.
However, the importance of technology to the economy can’t be ignored. With the development of artificial intelligence (AI), cloud computing, and digital transformation, there are still opportunities for tech to make a comeback.
Tech companies focusing on advanced digital services, cybersecurity, and AI-powered solutions are continuing to seek real estate in Asia-Pacific, albeit with caution. This more selective demand is creating a niche market within the broader tech industry, keeping corporate real estate opportunities alive but at a reduced pace.
Green and Renewable Energy
One of the more prominent sectors poised for corporate real estate growth is green and renewable energy. The global shift towards decarbonisation and sustainability is rapidly gaining traction in Asia-Pacific, driven by government initiatives and international climate commitments. As countries strive to reduce their carbon footprints and meet ambitious climate goals, investment in clean energy projects is accelerating.
Green energy companies are expanding, creating demand for a variety of real estate solutions, from office spaces for corporate headquarters to specialised industrial sites for manufacturing and research facilities. Solar farms, wind energy installations, and hydropower plants are on the rise, with countries like Australia, New Zealand, and Japan leading the way in renewable energy adoption.
Also, the growing importance of green buildings is reshaping the corporate real estate landscape. More businesses are seeking eco-friendly, energy-efficient office spaces to align with their environmental, social, and governance (ESG) goals. Properties that are LEED-certified or designed to meet net-zero energy consumption are becoming increasingly attractive.
In response, developers are incorporating sustainable materials and energy-efficient systems to cater to this rising demand. This trend is expected to continue well into 2025, with renewable energy companies and environmentally conscious firms driving much of the demand for green real estate.
Examples:
- Ørsted: Expanding its renewable energy projects across the Asia-Pacific, Ørsted is investing in new wind farms in Taiwan and offshore solar projects in Australia, increasing the need for specialised industrial and office space.
- Tesla: Investing in solar and energy storage solutions in Australia, Tesla is establishing new manufacturing and research facilities to support its sustainable energy initiatives.
- Enel: Expanding solar farms in India, Enel is driving demand for large-scale industrial real estate to accommodate its growing renewable energy projects.
Healthcare and Biotech
Healthcare and biotechnology are showing remarkable resilience and growth potential, making them key drivers of corporate real estate demand. The COVID-19 pandemic accelerated the expansion of healthcare infrastructure and research facilities, a trend that continues post-pandemic. In the Asia-Pacific region, where populations are ageing and healthcare needs are growing, this sector is expected to maintain strong demand.
Healthcare real estate encompasses a variety of spaces, from hospitals and clinics to specialised facilities for medical research, biotech laboratories, and pharmaceutical manufacturing plants. Life sciences hubs are emerging in cities like Singapore, Sydney, and Seoul, where healthcare and biotech firms are investing in cutting-edge research and development.
The growing demand for personalised medicine, vaccines, and advanced medical treatments is driving the need for state-of-the-art laboratories and research spaces. Additionally, the rising interest in telemedicine and remote healthcare solutions is creating new opportunities for digital health companies, further increasing the demand for flexible, tech-enabled office spaces in the healthcare sector.
Examples:
- Pfizer: Expanding its biotech research facilities in Singapore, Pfizer is investing heavily in new laboratories and office spaces to support its pharmaceutical innovations.
- Roche: Investing in medical research centres in South Korea, Roche is enhancing its presence in the region to drive advancements in healthcare technologies.
- Johnson & Johnson: Building new healthcare campuses in Australia, Johnson & Johnson is increasing its infrastructure to support its expanding range of medical devices and pharmaceutical products.
Manufacturing and Logistics
The global supply chain disruptions caused by the COVID-19 pandemic and subsequent geopolitical tensions have prompted many countries to reassess their dependence on international trade. This shift towards more localised production and regional supply chains is creating significant opportunities for the manufacturing and logistics sectors, both of which are closely linked to corporate real estate.
The rise of e-commerce, accelerated by the pandemic, has spurred demand for warehouses, distribution centres, and last-mile delivery hubs in urban and suburban areas. Consumers’ expectations for fast delivery have driven companies to invest in logistics infrastructure, particularly in high-demand regions like Southeast Asia. As a result, industrial real estate is booming, with countries like Vietnam, Indonesia, and Thailand becoming key players in the global supply chain.
In addition to e-commerce, the electronics and automotive industries are contributing to the growth of manufacturing real estate. Countries such as Malaysia and India are becoming manufacturing hubs for global firms seeking to diversify their production bases and reduce their reliance on China. The increasing adoption of advanced manufacturing technologies, such as robotics and automation, is also driving demand for specialised industrial facilities that can support these innovations.
Examples:
- Amazon: Expanding warehouses in Vietnam and Indonesia, Amazon is increasing its logistics footprint to meet the growing e-commerce demand in the region.
- Samsung: Increasing manufacturing facilities in Malaysia, Samsung is investing in advanced production lines for electronics, driving demand for specialised industrial spaces.
- Toyota: Building new distribution centres in Thailand, Toyota is enhancing its supply chain resilience by establishing regional logistics hubs to support its automotive operations.
Finance and Professional Services
The finance and professional services sectors remain robust pillars of the corporate real estate market, particularly in key financial hubs like Hong Kong, Singapore, and Sydney. Despite global economic uncertainties, these sectors continue to expand, supporting demand for premium office spaces and coworking environments.
Hybrid work models, which combine remote and in-office work, are becoming more entrenched across the finance and professional services industries. As companies look to optimise their office footprints, flexible office solutions are becoming increasingly popular. Coworking spaces and serviced offices offer the flexibility to adjust space requirements based on changing business needs, making them an attractive option for firms seeking cost-efficiency without compromising on quality.
Also, the finance sector’s focus on digital transformation is leading to the rise of fintech companies, which are actively seeking office space in major financial centres. The ongoing digitalisation of financial services, from mobile banking to blockchain technology, is driving the need for modern, tech-enabled offices that can support the industry’s evolving needs.
Examples:
- HSBC: Expanding office space in Singapore’s financial district, HSBC is increasing its regional presence to support its growing financial services operations.
- Deloitte: Opening new professional services hubs in Sydney, Deloitte is investing in modern office spaces to accommodate its expanding workforce and service offerings.
- Goldman Sachs: Establishing fintech offices in Hong Kong, Goldman Sachs is enhancing its digital banking and investment services, driving demand for high-tech office environments.
Will Tech Make a Comeback?
The tech sector’s decline since 2022 has raised concerns about its ability to drive real estate demand in the near term. However, there are several factors that could contribute to a tech recovery in the coming years.
Artificial intelligence (AI), machine learning, and cloud computing are at the forefront of technological advancements, and companies specialising in these areas continue to show resilience. The rise of AI-driven solutions is expected to create new demand for tech-focused office spaces, particularly in innovation hubs like Shanghai, Bangalore, and Seoul. As businesses increasingly rely on data analytics and automation, the need for digital infrastructure, such as data centres, is expected to grow, boosting demand for specialised real estate.
Additionally, the expansion of 5G networks and the Internet of Things (IoT) is creating new opportunities for tech firms involved in telecommunications, smart cities, and connected devices. These developments could lead to a resurgence in demand for office and industrial real estate in tech-centric markets.
A Shift Towards Diversification
As 2025 approaches, the corporate real estate market in Asia-Pacific is undergoing a transformation. While the tech sector’s future remains uncertain, other industries are stepping up to drive demand for office, industrial, and specialised real estate.
Green and renewable energy, healthcare and biotech, manufacturing, logistics, and finance are expected to be the key growth sectors in the coming year. These industries are not only resilient but also aligned with global trends such as sustainability, healthcare innovation, and supply chain resilience.
Investors, developers, and corporate real estate professionals will do well to focus on these emerging sectors as they make plans. By diversifying portfolios, realigning resources and strategies, and tapping into these growing industries, they can position themselves to capitalise on the next wave of real estate demand in Asia. While tech may eventually make a comeback, the immediate future of corporate real estate is likely to be in these other sectors.
