June 29, 2026, (Inside AI) — Artificial intelligence is reshaping global capital flows, but warnings about its disruptive effect on Asia's property markets are overblown. That is the central argument from Nicholas Spiro, partner at London-based Lauressa Advisory, a specialist real estate and macroeconomic advisory firm.
Spiro challenges the narrative that AI will hollow out office demand across major Asian hubs. He points to the region's unique demographic and economic tailwinds that will sustain real estate values. His analysis arrives amid a surge in AI infrastructure spending that is drawing comparisons to historic industrial transformations.
McKinsey now projects that data centers alone will require US$6.7 trillion in capital investment across the global value chain over the next five years. This staggering figure underscores the scale of the economic shift under way. Vanguard, in a June 24 report, likened the AI infrastructure buildout to the 19th-century railroad expansion and the late-1990s technology boom.
Such comparisons frame AI as a foundational economic layer capable of lifting productivity and reshaping trade patterns. Yet for Asian real estate, Spiro insists the fears are misplaced. He notes that office markets in cities like Tokyo, Singapore, and Seoul are supported by tight supply, low vacancy, and a deep pool of traditional finance and tech tenants.
Unlike Western markets, many Asian CBDs face limited new construction due to land scarcity and regulatory hurdles. This supply constraint acts as a buffer against any AI-driven reduction in office space demand. Spiro also highlights that hybrid work adoption in Asia has been less aggressive than in the US or Europe, keeping physical occupancy rates higher.
The Vanguard report warns that the AI buildout could concentrate gains in tech-driven economies, potentially widening regional disparities. But Spiro argues that Asia's diversified economic base—spanning manufacturing, logistics, and services—provides resilience. He sees AI more as a demand driver for industrial and data center properties than a threat to offices.
Data center real estate is already booming in markets like Mumbai, Osaka, and Johor. This asset class is absorbing billions in capital, offsetting any softness in traditional segments. Spiro's view aligns with investors who are rotating into logistics and digital infrastructure rather than exiting real estate entirely.
Critics, however, caution that AI's long-term impact on white-collar employment could eventually erode office demand. A 2025 study by the Asian Development Bank estimated that 14% of jobs in Southeast Asia are at high risk of automation. Yet Spiro counters that history shows technology often creates new roles that require physical collaboration, sustaining office use.
He also points to the region's demographic dividend. Young, urbanizing populations in India, Indonesia, and the Philippines will drive demand for commercial space for decades. This contrasts with aging Western economies where AI might amplify existing real estate headwinds.
For now, the capital pouring into AI infrastructure is itself becoming a real estate story. The need for power, connectivity, and cooling is turning secondary Asian cities into data center hubs. This trend is reshaping land values and creating new investment corridors far from traditional financial districts.
Spiro's message is clear: treat AI as an evolution, not a revolution, for Asian property. The sector has weathered technological shifts before, from the dot-com bubble to e-commerce. With disciplined supply and robust demand fundamentals, the region's real estate appears positioned to adapt rather than collapse.
