Commercial Real Estate - Taiwan | Statista Market Forecast

The Commercial Real Estate market market in Taiwan is anticipated to reach a value of US$1.10tn in 2024.
This projection indicates a steady growth rate of 0.12% annually from 2024 to 2029, resulting in a market volume of US$1.10tn by 2029.
When compared globally, the United States is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
Taiwan's commercial real estate market is experiencing a surge in demand, particularly in the office space sector, driven by the country's booming technology industry.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Taiwan is experiencing significant growth and development in recent years.

Customer preferences: In Taiwan, there is a strong demand for commercial real estate properties, particularly in urban areas. This is mainly driven by the increasing number of businesses and companies looking to establish their presence in the country. Many local and international companies are attracted to Taiwan's strategic location in East Asia and its strong economic growth. As a result, there is a high demand for office spaces, retail spaces, and industrial properties.

Trends in the market: One of the key trends in the commercial real estate market in Taiwan is the rise of mixed-use developments. Developers are increasingly incorporating a mix of residential, commercial, and retail spaces in their projects to cater to the diverse needs of the market. These mixed-use developments not only provide convenience for residents but also create vibrant and dynamic communities. Another trend is the growing popularity of coworking spaces. With the rise of startups and the gig economy, there is a growing demand for flexible and collaborative workspaces. Coworking spaces offer affordable and flexible office solutions for entrepreneurs and small businesses, and they are becoming a preferred choice for many professionals in Taiwan.

Local special circumstances: Taiwan's commercial real estate market is also influenced by its unique geopolitical situation. As an island nation with limited land resources, there is a scarcity of prime real estate in Taiwan. This scarcity drives up property prices and creates a competitive market. Developers and investors need to carefully consider location and accessibility when planning new projects.

Underlying macroeconomic factors: Taiwan's strong economic growth and stable political environment contribute to the development of the commercial real estate market. The country has a well-developed infrastructure, including transportation networks and modern office buildings, which attract businesses and investors. Additionally, the government has implemented policies to support the growth of the real estate sector, such as tax incentives and streamlined approval processes for construction projects. In conclusion, the Commercial Real Estate market in Taiwan is experiencing growth and development due to the increasing demand for commercial properties, the rise of mixed-use developments, and the popularity of coworking spaces. The scarcity of prime real estate, strong economic growth, and supportive government policies also contribute to the market's growth.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.