Clearer markets, brighter sentiment to boost Apac real estate investment momentum in 2026: Colliers

Atiqah Mokhtar

/ EdgeProp Singapore

March 9, 2026 5:49 PM SGT

propertyeditor@edgeprop.sg

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Real estate investments in Asia Pacific are poised for a broad-based recovery in 2026, amid improving market clarity, stabilising conditions and renewed investor engagement, says Colliers (Picture: Samuel Isaac Chua/EdgeProp Singapore)

Real estate investments in Asia Pacific (Apac) are poised for a broad-based recovery in 2026, amid improving market clarity, stabilising conditions and renewed investor engagement, says Colliers. In a March research report, the real estate firm notes that transaction activity has picked up, as steadying interest rates and inflation levels have brought back confidence among investors.

“We are seeing a shift from caution to conviction as investors are prioritising clarity, quality and markets with depth of capital,” comments Theo Novak, Colliers’s managing director for capital markets in Apac.

The shift resulted in higher transaction activity in the second half of last year, with Colliers reporting US$87.3 billion ($111.9 billion) in Apac real estate investment volume in 2H2025 — an increase of 11% y-o-y. The figure is based on the top nine markets across Apac, comprising Australia, Hong Kong, India, Japan, Mainland China, Singapore, South Korea, New Zealand and Taiwan.

This, in turn, brought the full-year investment volume to US$162 billion in 2025, 8% higher compared to the year before.

Key markets that led investment transactions included Australia, Hong Kong, India and Singapore, all of which registered higher investment volumes compared to the previous year. In contrast, investments in Japan were flat in 2025, while Mainland China, New Zealand, South Korea and Taiwan recorded y-o-y declines.

Among the markets that logged growth, Singapore saw the biggest increase, with investment volume surging 35% y-o-y to US$29.4 billion in 2025. This represents an eight-year high since 2017 and reflects strengthening investor confidence, expanding opportunities and improving market fundamentals, adds the report.

The office sector continued to anchor investment activity across Apac, with US$58.5 billion in transactions logged across the top nine Apac markets in 2025. This was followed by the following sectors: industrial and logistics (US$30.1 billion), retail (US$29.7 billion), residential (US$20.2 billion), hospitality (US$12.2 billion) and alternative assets (US$11.3 billion).

Most real estate investments in 2025 were driven by domestic capital. However, offshore investor participation remained relatively healthy in markets such as Hong Kong, Singapore and India, notes Colliers.

For 2026, the firm expects Apac investors to be more active, supported by improved financing visibility and an uptick in global fundraising. While domestic capital will remain the primary driver of transactions, cross-border deals are also expected to pick up as investor risk appetite gradually increases.

Within this landscape, office and industrial assets are anticipated to continue underpinning volume. However, the report highlights that alternatives, together with select retail assets, may continue to attract incremental capital amid diversification strategies.

As a result, transaction activity is likely to “recover steadily across core and alternative sectors, signalling a measured yet broad-based recovery”, Colliers states.

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Clearer markets, brighter sentiment to boost Apac real estate investment momentum in 2026: Colliers

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