TAIPEI (Taiwan News) — Taiwan’s commercial real estate market has remained resilient this year, supported by steady demand from the AI industry despite global economic headwinds, according to global real estate advisory firm Savills.
Savills said large-scale commercial real estate transaction volume in Taiwan reached NT$150.1 billion (US$4.4 billion) this year, down 8% from a year earlier. However, the figure remains above the 10-year average of NT$130.6 billion, suggesting the market has performed better than expected, per CNA.
The firm said Taiwan’s growing AI industry has helped stabilize demand for commercial real estate amid uncertainties caused by tariffs, exchange rate fluctuations, and interest rate changes.
Looking ahead to next year, Savills Taiwan Chair Ricky Huang (黃瑞楠) said the biggest variable in the first half of the year will be the outcome of Taiwan–US trade tariff negotiations, which could significantly influence corporate investment strategies and real estate demand. Huang made the remarks at Savills’ year-end press conference in Taipei.
Savills general manager Henry Chen (陳逸鴻) said US tariff measures announced in April led to a decline in commercial real estate transactions in the second quarter. Activity rebounded in the second half of the year, however, with quarterly transaction volumes recovering to about NT$30 billion, supported by both technology firms and traditional industries.
In the land market, including large-scale land purchases and leases, Chen said developers’ buying momentum has weakened following the Central Bank’s seventh round of housing market control measures introduced last year. As a result, land transactions have been concentrated on acquisitions of older hotels for future land consolidation and redevelopment.
Savills projects total land transactions to reach only NT$159.2 billion in 2025, a 34% decline from this year. Overall, commercial real estate transactions have continued last year’s momentum, diverging from the weaker land market.
The firm said the insurance industry invested a total of NT$16.6 billion in land and commercial real estate this year, a year-on-year drop of 45.2%. Land accounted for a relatively large share of those investments, with companies such as Cathay Life and Yuanta Life primarily acquiring land. Taiwan Property Insurance and Taiwan Life focused on commercial real estate mainly to meet their own office needs.
Savills added that the minimum return on real estate investment for the insurance sector fell to 2.545% this year.
Looking to next year, Huang said corporate real estate performance will hinge on whether Taiwan can secure tariff terms comparable to those of its major competitors in negotiations with the United States. He added that the scale and structure of Taiwan’s committed investment in the US will also be critical.
If investment is overly concentrated on building factories in the US, Huang warned, it could crowd out domestic expansion and dampen demand for industrial real estate in Taiwan.
Huang also noted that next year is an election year, during which the government is expected to roll out economic stimulus policies. At the same time, market participants will be watching closely to see whether the Central Bank relaxes housing market controls, a move that could allow more capital to flow into real estate and determine whether transaction volumes rebound.
