The Asia-Pacific (APAC) commercial real estate market is poised for stabilization in 2025, driven by resilient economic growth and evolving investment trends. However, the office sector faces challenges due to an oversupply of space and shifting workplace dynamics. 
According to CBRE’s 2025 Asia Pacific Real Estate Market Outlook, the region’s GDP is projected to grow by 4.1%, slightly above the previous year’s 3.9% expansion. This economic stability is expected to bolster investor confidence, with commercial real estate transaction volumes anticipated to rise between 5% and 10% year-on-year. 
Despite this positive outlook, the office sector presents a mixed picture. Cushman & Wakefield forecasts robust demand, averaging 75 million square feet annually over the next few years. However, an influx of new supply—exceeding 100 million square feet between 2025 and 2027—is projected to push regional vacancy rates close to 20%. 
Employment growth, particularly in white-collar sectors such as technology, professional services, and financial services, is expected to drive office space demand. These industries are projected to add approximately 2.8 million jobs in 2025, accounting for over half of the new white-collar positions in the region. 
In response to evolving tenant preferences, there is a growing emphasis on upgrading office spaces to premium standards. Factors such as sustainability, environmental, social, and governance (ESG) compliance, and mandatory stock market regulations are driving sustained demand for ESG-compliant office spaces. 
Overall, while the APAC commercial real estate market is on a path to stabilization, stakeholders must navigate the complexities of the office sector’s supply-demand dynamics and the increasing importance of sustainable and premium office environments.
Source: comp.