HÀ NỘI — Artificial intelligence is expected to support economic growth and increase demand for commercial real estate across the Asia-Pacific region, challenging concerns that technological advances could reduce the need for physical space, according to a report by Cushman & Wakefield.

The property services firm said AI is likely to act as a catalyst for both economic expansion and real estate demand as the region strengthens its role as a global hub for manufacturing, services and innovation.

Dominic Brown, head of International Research, Global Think Tank at Cushman & Wakefield, said the idea that artificial intelligence could reduce demand for physical real estate is misplaced, as the technology is expected to stimulate economic activity and increase demand across multiple property sectors.

Under its base-case scenario, which Cushman & Wakefield assigns a 50 per cent probability, the Asia-Pacific economy is expected to grow by 3-4 per cent annually through 2030, supported by AI adoption and infrastructure investment.

Cushman & Wakefield said AI is expected to reshape investment flows in the real estate market, creating new growth opportunities across office, industrial and data centre segments.

In the office sector, AI is expected to accelerate demand for high-quality properties rather than reduce space requirements, with occupiers increasingly seeking premium and flexible workplaces that support innovation and collaboration.

Industrial and logistics properties are also expected to benefit from AI adoption, alongside continued growth in e-commerce and changes in global supply chains.

Data centres are expected to be among the biggest beneficiaries of the AI boom, as demand for computing power, data storage and cloud services continues to rise.

The report said data centres are increasingly being viewed as strategic infrastructure underpinning the digital economy, prompting growing interest from global investors.

According to Hoàng Nguyệt Minh, general director of Cushman & Wakefield Vietnam, emerging markets such as Việt Nam are well-positioned to benefit from AI-driven economic growth.

Minh said Việt Nam's advantages include a strong manufacturing base, export-oriented investment, competitive construction costs and a rapidly expanding digital economy.

She added that the country's data centre market holds significant long-term potential as technology companies, AI platforms and digital service providers increasingly require local data storage and processing infrastructure. — BIZHUB/VNS