Trump 2.0: Analyzing the First 100 Days' Impact on APAC Real Estate

Trump 2.0: The First 100 Days and Its Impact on APAC Real Estate

The recently released report titled "Trump 2.0: The First 100 Days – Implications for the APAC Economy & Property Markets" by Cushman & Wakefield provides an extensive analysis of the economic landscape in the Asia-Pacific (APAC) region following President Trump's first 100 days in office during his second term. This period has seen significant alterations in U.S. trade, tariffs, and deregulation policies, which have dramatically influenced global markets.

Despite rising uncertainty in the global economy, the APAC economy and real estate sectors have shown remarkable resilience, primarily driven by strong domestic demand, inflows of capital, and diversification of supply chains. The report delves into how the recent policy shifts are restructuring economic outlooks, particularly within the APAC zone. It highlights the increased uncertainty stemming from changes in U.S. trade, tax, and deregulation policies that directly impact global business sentiment and the challenges faced by the APAC region.

Key Findings from the Report:

1. Growth Projections Dimming: The risk of recession in the United States, compounded by signs of stagflation, suggests a slowdown in global economic growth by 2025. Nonetheless, an expected recovery in the U.S. economy in 2026 may provide a favorable tailwind for the APAC region.

2. Disruptions in Trade: Ongoing tariffs and potential trade conflicts are putting manufacturers reliant on exports to the U.S. at significant risk. However, despite such trade frictions, the diversification of supply chains is beneficial to industrial hubs in Southeast Asia and India, leading the manufacturing sector to continuously assess and optimize their supply chain designs in light of these disruptions.

3. Resiliency in Real Estate: Major markets such as India, Indonesia, and the Philippines are witnessing continued absorption of office space, with healthy demand from both tenants and investors for commercial real estate. In Q1 2025, net absorption of office space across the APAC region rose approximately 20% year-on-year to about 26 million square feet, compared to 22 million square feet in Q1 2024.

4. Global Capital Inflows: The strength of the U.S. dollar and the relative attractiveness of yields are prompting substantial capital inflows into APAC's real estate sector, especially in stable sectors like logistics, data centers, and multifamily housing. Trends indicate that declining interest rates may further bolster investments in commercial real estate.

Dr. Dominique Brown, head of international research at Cushman & Wakefield, emphasizes the importance of the robust fundamentals of the APAC region: "As uncertainty rises, typically business and investment appetites decline. However, the strength of APAC's fundamentals is mitigating some of that impact. The real estate market in this region continues to show solid resilience, but the hesitance of businesses and investors to make decisions amid such uncertainty poses a key risk in the near term."

The Path Forward

While risks undoubtedly loom larger, historical trends indicate that the APAC real estate market is poised for quick recovery once global uncertainties dissipate. It is crucial for tenants and investors to remain agile and adjust their strategies promptly to effectively ride the upcoming waves of recovery. As outlined in the report, navigating through this complex environment will require diligence and proactive decision-making.

For a full reading of the report, you can visit the link to "Trump 2.0: The First 100 Days – Implications for the APAC Economy & Property Markets."

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm, listed on the New York Stock Exchange. With approximately 52,000 employees operating in about 400 offices across 60 countries, Cushman & Wakefield provides core services in facilities management, brokerage, appraisal, tenant representation, leasing, and project management. The company reported revenues of $9.4 billion in 2024. Guided by the ethos of "Better never settles", Cushman & Wakefield has received numerous accolades for its award-winning corporate culture, earning recognition from various industries and business sectors. For more information, visit www.cushmanwakefield.com.