Real estate investment in the Asia Pacific region surged by 8% in 2025, reaching US$162b, according to the latest report from Colliers. This growth was attributed to improved market clarity, easing financial conditions, and renewed buyer confidence, with momentum building in the latter half of the year.
The report highlights that domestic capital remains a key anchor for the region, whilst cross-border investors are re-engaging in markets such as Hong Kong, Singapore, and India. South Korea, Japan, and Singapore led the investment volumes, with Singapore and India experiencing the strongest annual growth at 35% and 29%, respectively.
Sector-wise, office assets continued to dominate the investment landscape, supported by sustained demand for high-quality, well-located properties. The logistics sector saw investments of US$30.1b, whilst retail investments increased by 15% as investor confidence improved. Alternative asset classes emerged as the fastest-growing segment, driven by strong institutional demand.
Theo Novak, Managing Director of Capital Markets & Investment Services at Colliers, noted a shift from caution to conviction among investors, who are now prioritising clarity and quality. “This broadening of activity is a key signal of a healthier and more sustainable recovery,” Novak stated.
Looking ahead, Colliers anticipates further strengthening of investment momentum in 2026, supported by stabilising interest rates and a gradual recovery in cross-border capital flows. Domestic capital is expected to remain the primary driver, with offshore participation likely to increase as risk appetite improves.
