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Amid evolving tariff policies and the potential trade wars, manufacturing sectors reliant on US exports face heightened risks; however, ongoing supply chain diversification is benefiting industrial hubs and commercial real estate in India and Southeast Asia, according to a report by global real estate services firm Cushman & Wakefield.
The report added that the manufacturers will continue to evaluate their supply chain design and seek further opportunities for optimisation. According to Cushman & Wakefield's report, Trump 2.0: The First 100 Days - Implications for the APAC Economy & Property Markets, the 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. As per the report, the net absorption of office space across APAC in the first quarter (1Q) of 2025 is approximately 26 million square feet, a 20 per cent year-on-year increase. The report adds that as a result of trade tariffs imposed on China by the US during the first Trump administration, together with China +1 manufacturing strategies, industrial production has expanded rapidly across the Asia Pacific region. "The primary beneficiaries have been India and markets in South East Asia," the report added. "Uncertainty has been the dominant theme of the first 100 days," said Dr Dominic Brown, Head of International Research at 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." Recognising the impact, the report added that hard policy shifts during the first 100 days of President Donald 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, the report added. (ANI)
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