India’s Commercial Real Estate Thrives Amid Global Trade Headwinds

A Story of Resilience: India’s CRE Market in 2025

In a world where global trade winds are shifting and uncertainty looms, India’s commercial real estate (CRE) sector stands tall as a beacon of resilience and opportunity. The latest Cushman & Wakefield report reveals that, even as trade tensions and policy volatility sweep across continents, occupier and investor demand for commercial spaces in India remains unwavering.

Strong Office Space Absorption Across APAC

Across the Asia-Pacific region, the first quarter of 2025 saw office space absorption surge by 20%, reaching 26 million square feet-up from 22 million in the same period last year. This robust momentum is echoed in India, Indonesia, and the Philippines, where businesses continue to expand and invest in future-ready workspaces.

Global Capital Inflows and Market Drivers

What’s fueling this growth? The answer lies in a confluence of global and domestic factors. The strong U.S. dollar and attractive yields are drawing capital from around the world into Asia-Pacific real estate, particularly in stable sectors like logistics, data centres, and multifamily assets. As interest rates trend downward, the stage is set for even greater investment activity in India’s commercial property market.

Navigating Trade Tensions and Supply Chain Diversification

Yet, the landscape is not without its challenges. With evolving tariffs and the specter of trade wars, manufacturers exporting to the U.S. face heightened risks. Still, India and Southeast Asia are reaping the benefits of ongoing supply chain diversification, as global companies adapt and optimize their operations. This shift is transforming industrial hubs and driving demand for high-quality commercial spaces.

Policy Volatility and Market Resilience

The report also highlights the impact of recent policy shifts in the U.S., which have injected volatility into global markets. Despite these headwinds, Asia-Pacific’s economy and property markets remain anchored by strong domestic drivers and sound fundamentals. As Dominic Brown, Head of International Research at Cushman & Wakefield, notes, “While risks are clearly elevated, historical trends suggest that Asia Pacific’s property markets are well-positioned to rebound quickly once greater global clarity emerges.”

Outlook for 2025 and Beyond

As 2025 unfolds, India’s CRE sector is buoyed by resilient domestic demand and continued investment, even as businesses adopt a more cautious approach amid policy turbulence. The message for occupiers and investors is clear: stay nimble, adapt strategies, and be ready to ride the wave of recovery when it comes.