New Delhi, April 30
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.
New Delhi [India], April 30 (ANI): 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
Reader Comments
This is excellent news for Make in India! 🚀 With global companies diversifying supply chains, our industrial hubs in Gujarat, Tamil Nadu, and Maharashtra are perfectly positioned to attract more investments. Hope state governments improve infrastructure to sustain this growth.
While the report is optimistic, we must ensure this growth benefits local workers too. Many SEZs pay low wages - the government should mandate fair pay standards alongside these investments. Development must be inclusive!
China+1 strategy is working in our favor! 🇮🇳 But we need to be careful about over-dependence on US policies. Remember what happened to our pharma sector during COVID. Diversification should mean multiple trade partners, not just shifting from China to US-led systems.
Good to see commercial real estate doing well, but what about affordable housing? All these office spaces mean more migration to cities. Developers should be required to build housing for middle-class workers too, not just luxury apartments and corporate parks.
The 20% YoY increase in office space absorption is impressive! 💼 Hope this creates more white-collar jobs for our youth. But we must upskill our workforce - many graduates lack industry-ready skills. Tie-ups between companies and universities are crucial.
While SE Asia is benefiting too, India has the advantage of scale. But our bureaucratic red tape still scares investors. Single-window clearances promised years ago need proper implementation. Speed matters in global business!
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.