The Colliers' 2025 APAC Real Estate Outlook reveals strong investor optimism, with 69% planning to allocate over 30% of global assets to real estate. India emerges as a key investment destination, attracting USD 19 billion in institutional investments since 2021. Driven by expectations of interest rate cuts and economic growth, investors are targeting office, industrial, logistics, and multi-family sectors. The report highlights increasing capital inflows, sustainable investment trends, and promising growth prospects in the Asia Pacific region for 2025.
The Colliers' 2025 Global Investor Outlook report highlights promising opportunities in the Asia Pacific (APAC) real estate market, with investors anticipating significant cross-border investment and renewed market activity in 2025.
Key market insights reveal a shifting investment landscape driven by expectations of interest rate cuts and narrowing valuation gaps. Investor sentiment is strongly positive, with 69% of APAC survey respondents planning to allocate over 30% of their global assets under management to real estate in the next five years. Investment trends show robust confidence in the region's economic potential while68% expect positive regional economic growth 67% plan to invest in APAC in 2025.
61% are targeting industrial, logistics, office, and multi-family/build-to-rent sectors 61% specifically focusing on core or core-plus CBD office assets Notably, nearly 90% of investors anticipate a value premium for ESG-compliant office assets within the next three years, signalling a strong emphasis on sustainable investments. India emerges as a particularly attractive investment destination within the APAC region. The country's real estate sector has witnessed substantial institutional investment, with capital inflows totaling USD 19 billion since 2021.
Investment volumes have consistently increased year-over-year, driven by strong domestic economic growth and surging demand across real estate segments. Sector-wise investment breakdown reveals Office assets of over 40% of institutional inflows (2021-2024). Accelerating momentum in industrial, warehousing, and residential sectors. First three quarters of 2024: USD 4.7 billion in investments (87% of 2023's total).
The report suggests that institutional investments in Indian real estate are poised to exceed 2023 levels in 2024, setting a promising trajectory for 2025. This trend is underpinned by robust investments across office, industrial, warehousing, and residential asset classes.
The convergence of factors such as anticipated interest rate reductions, strong economic fundamentals, and growing investor confidence positions the APAC region, particularly India, as an attractive destination for real estate investments in the coming years. This reflects a strategic shift from the prolonged inflationary period that previously kept many investors cautious, indicating a potentially transformative year for real estate investments in the Asia Pacific region.
Advertisement
Facebook
Whatsapp
