Asia's Commercial Property Boosted by 'China Plus One' and AI Demand

Two major business trends are boosting commercial real estate in Asia, according to a new report from global property consultancy Knight Frank. The "China plus one" strategy and the artificial intelligence (AI) boom are driving demand for factories, warehouses, and data centers. The "China plus one" strategy describes companies moving some manufacturing out of China to other Asian countries. This diversification aims to reduce supply chain risks. As a result, nations like Vietnam, India, and Thailand are seeing higher demand for industrial property. Meanwhile, the rapid growth of AI is increasing the need for data centers across the region. These specialized facilities house the powerful computers required for AI development and services. Knight Frank notes this is creating a significant new market for real estate investors and developers. The report concludes that these twin forces are creating strong investment opportunities. Industrial and logistics assets, along with technology-related real estate, are now key areas of growth in Asia's property sector.