Asia-Pacific real estate in 2026: Built on structural economic strength
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Despite tariff headwinds, Asia-Pacific is projected to maintain 4.1% GDP growth in 2026, demonstrating the region's structural economic strength. This represents a modest deceleration from 4.5% in 2025, as the full impact of tariffs produces more pronounced pressure on investment and labour markets following export frontloading that lifted 2025 performance.
Most economies are expected to see growth soften by less than 1 percent, a manageable adjustment that preserves the region's position as a global growth driver.
Taiwan’s growth is expected to cool in 2026, after demand for artificial intelligence (AI) technology drove GDP growth in 2025 to a 15-year high . However, South Korea stands as a counterpoint, with growth accelerating thanks to a 31.8 trillion (US$23.3 billion) supplementary budget.
Growth in the New Zealand economy is expected to improve with the easing of policy rates in 2025, while domestic consumption will support the populous economies of the Philippines and Indonesia.
Largely powered by its emerging economies, the Asia-Pacific region will continue to remain a global growth driver.
Monetary policy and AI spending to support growth
Most central banks in the region have cut policy rates since 2024. With the easing cycle likely at its tail end in 2026, the magnitude of rate cuts will be relatively modest. Nevertheless, monetary and fiscal stimulus still have sufficient flexibility to remain supportive in 2026 should external conditions deteriorate.
Inflation has eased, and with at least two 25-basis-point cuts expected from the Federal Reserve in 2026, most central banks in the region will have room to manoeuvre. The recent strengthening of regional currencies against the US dollar further eases imported inflation pressures, allowing for calibrated cuts if required and a stable environment for real estate markets.
Alongside the region's long-term growth drivers is an artificial intelligence-driven cycle that will continue to fuel growth by boosting tech exports and strengthening intra-regional trade.
Investments in AI-related equipment, facilities, and data centres have supported strong performance through 2025. Key Asian economies—including Taiwan, South Korea, Singapore, Malaysia, Thailand, and Vietnam—integral to the global tech supply chain, are benefiting from sustained global technology spending.
Structural versus cyclical strength
Asia-Pacific's resilience is fundamentally structural, not cyclical. While trade tensions and tariffs will temper near-term economic growth in 2026, the region's deepening trade linkages, technology-led investments, and emerging economic clusters position it as a primary engine of global growth and wealth creation.
Evolving fundamentals over the last decade have made the region a core pillar of global real estate strategy. Its dynamic markets will adapt to the shift in geopolitical realities and continue to remain compelling across a spectrum of strategy and thematic opportunities.
Implications for real estate markets
This economic backdrop creates a stable foundation for real estate decision-making in 2026. Moderate growth, easing monetary policy, controlled inflation, and technology-driven expansion provide clarity for both occupiers and investors planning their strategies. The combination of structural economic strengths and continued policy support positions Asia-Pacific real estate markets to navigate 2026 from a position of fundamental stability, even as specific sectors and markets face their own dynamics and challenges.
Discover more insights in our 2026 Asia-Pacific outlook report here.