RealEstat.id (Jakarta) – Real estate investment activity across Asia Pacific is entering a broad-based recovery phase as improving market clarity, easing financial conditions and renewed investor confidence support a wider re‑engagement of capital, according to Colliers.
Colliers’ new Asia Pacific Investment Insights March 2026 report has found total real estate investment volumes across nine key Asia Pacific markets reached USD162 billion in 2025, marking an 8% year‑on‑year increase, with momentum building in the second half of the year as buyers and sellers moved closer on pricing expectations.
The rebound was underpinned by stronger domestic capital flows, which continued to anchor investment activity across most markets, while cross‑border participation remained resilient in key gateway locations including Hong Kong, Singapore and India.
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“We are seeing a shift from caution to conviction,” said Theo Novak, Managing Director, Capital Markets & Investment Services, Asia Pacific at Colliers. “Investors are prioritising clarity, quality and markets with depth of capital.
“With domestic capital providing a stable foundation and cross‑border interest beginning to re‑engage, the region is entering a more measured, disciplined and increasingly broad‑based recovery phase.”
South Korea, Japan and Singapore together led investment volumes across the nine key Asia Pacific markets in 2025, highlighting the depth and resilience of these core markets.
Singapore and India recorded the strongest year‑on‑year growth, at 35% and 29% respectively, reflecting improving market fundamentals and expanding investment opportunities.
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By sector, office assets remained the cornerstone of Asia Pacific investment activity, supported by sustained occupier demand for high‑quality, well‑located assets and limited new supply in prime CBD locations.
The industrial and logistics sector recorded USD30.1billion in investment, ranking second overall despite a moderation from the exceptionally strong activity seen in 2024.
Retail investments gained momentum, rising 15% year‑on‑year as improving asset performance and consumer sentiment renewed investor confidence. Alternative asset classes emerged as the fastest‑growing segment led by strong institutional demand.
“Office assets continue to provide scale, transparency and income stability, but we are also seeing a clear acceleration into alternatives and selective retail as investors rebalance portfolios and pursue diversification,” Novak said. “This broadening of activity is a key signal of a healthier and more sustainable recovery.”
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Looking ahead, Colliers expects Asia Pacific investment momentum to strengthen further in 2026, supported by stabilising interest rates and inflation, improved visibility on financing conditions and a gradual recovery in cross‑border capital flows.
Domestic capital is expected to remain the primary driver of transaction activity, while offshore participation is likely to broaden as risk appetite improves and pricing certainty continues to increase.
Core sectors such as office are anticipated to retain depth, while alternatives and selected retail assets are set to attract incremental capital as investors pursue income resilience and long‑term growth.
“While challenges remain, the direction of travel is clear,” Novak said. “Improving capital market visibility, relatively stronger domestic growth prospects and renewed cross‑border engagement are setting the stage for a more balanced and broad‑based recovery across Asia Pacific in 2026.”
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