TAIPEI (Taiwan News) — Colliers Taiwan on Monday maintained a cautious outlook for the commercial real estate market, citing policy constraints, tight liquidity and subdued land transactions despite strong economic growth and continued expansion of the technology sector, per a press release.
Colliers Taiwan, a leading real estate and investment management firm, said Taiwan’s economy grew by 7.3%, supporting steady momentum in commercial real estate. However, government measures aimed at cooling the property market have limited capital flows, with total commercial real estate transactions totaling NT$167.5 billion (US$5.3 billion), down from a year earlier.
Eileen Liang (梁儀盈), senior research director at Colliers Taiwan, said factory buildings remained the largest transaction category, totaling NT$62.2 billion and accounting for 37% of overall deal value. In contrast, investment activity from the financial and insurance sector, previously a key driver, weakened significantly, accounting for only 4% of transactions in 2025.
The land transaction market also turned cautious last year, with both buying and selling slowing. Total land transaction volume fell to NT$149.2 billion, a 30% year-on-year drop and the second-lowest level recorded over the past five years.
Looking ahead to 2026, Colliers Taiwan Chair Andrew Liu (劉學龍) said the market will be shaped by several trends. He said AI and related supply chains will continue to support economic growth, with short-term demand for industrial real estate expected to remain stable, while geopolitical factors will continue to drive overseas expansion by Taiwanese companies.
Liu added that demographic shifts, including population aging and declining birth rates, will generate new demand patterns, particularly for products and services targeting elderly and single-person households. Rising demand for computing power and data centers will also make energy supply a critical factor in attracting corporate investment.
More developers are expected to adopt AI technologies to enhance building services and operational efficiency, Liu said. He urged developers to accelerate improvements in sustainability and digital resilience to meet evolving market and customer expectations.
Against the backdrop of demographic change, Colliers said the retail and residential markets are also likely to be affected, with growing demand for smaller housing units. Developers should focus on livability, review usable floor area, and prioritize projects in accessible urban core areas with nearby medical facilities.
Colliers warned that medium- to long-term challenges are expected to emerge in 2026, urging investors to take a more pragmatic approach while accelerating sustainability and digital transformation to maintain competitiveness.
According to Colliers’ latest market survey, 16,667 square meters of new office space were added in 2025, bringing total office stock to 46,667 square meters. The vacancy rate rose to 7.53%, while average rent increased 1.8% year-on-year to NT$2,690 per 3.3 square meters per month.
Liang said demand for office space in downtown Taipei in recent years has largely been driven by companies seeking to upgrade their work environments. Colliers’ data show that 53% of firms currently lease buildings more than 26 years old, while only 13% occupy buildings less than 10 years old.
“This highlights that companies now place greater emphasis on employee experience and office quality,” Colliers said, adding that relocation decisions are no longer driven solely by cost but also by building innovation and sustainability.
The firm said landlords should plan ahead by offering more customized leasing terms to mitigate potential vacancy risks and strengthen sustainability and digital resilience. As offices increasingly serve as extensions of corporate culture and employee experience, these factors are expected to become central to future site selection decisions.
