Asia Pacific commercial real estate investment volumes reached US$40.3b in the fourth quarter of 2025, marking a 15% year-on-year increase, according to data from global real estate consulting firm JLL. The total investment for 2025 amounted to US$147.6b, a 12% rise from 2024, making it the strongest year since 2021 amidst challenging macroeconomic and geopolitical conditions.
Japan remained the most active market in the region, with US$9.8b in Q4 investments, contributing to a full-year total of US$41.4b. Despite a 9% year-on-year decline in Q4, Japan’s annual investment volumes rose by 14%, driven by significant sale-and-leaseback deals in office and industrial sectors. South Korea experienced a notable surge, with Q4 investments jumping 41% year-on-year to US$7.7b, totalling US$28.1b for 2025. This growth was fuelled by strong domestic demand for office assets and foreign interest in logistics.
Stuart Crow, CEO of Asia Pacific Capital Markets at JLL, noted, “The strong year-end performance caps a year of steady recovery for Asia Pacific’s commercial real estate markets. Despite a turbulent global backdrop, investment volumes have shown remarkable resilience.”
Cross-border investment trends highlighted the increasing role of regional capital, particularly from Singapore, which was active in Australia. The global boom in Artificial Intelligence (AI) spending is expected to drive demand for data centres, with investment volumes reaching US$15b in 2025.
Looking ahead to 2026, the real estate market is poised for cautious optimism, supported by economic growth, moderating inflation, and sophisticated capital strategies. Pamela Ambler, Head of Investor Intelligence at JLL, stated, “As we enter 2026, we anticipate a more stable operating environment supported by improving market fundamentals.”
