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• Real estate investment across the Asia Pacific region increased 19.2% year-on-year during Q1 2026, according to Savills.
• Prime office assets led the recovery, while industrial, logistics and data centre-related investments continued to witness strong demand.
• India emerged as a key market attracting investor interest due to infrastructure expansion, logistics growth and rising data centre activity.
• Cross-border capital flows strengthened during the quarter, particularly in Japan and Singapore.
• Investors continued focusing on core income-generating assets despite geopolitical tensions and global trade uncertainty.
Real estate investment activity across the Asia Pacific region recorded strong growth during the first quarter of 2026, supported by improving investor sentiment, rising office investments and continued demand for industrial and logistics assets, according to a report released by Savills. Advertisement
The report stated that Asia Pacific real estate investment volumes rose 19.2% year-on-year during Q1 2026 despite persistent geopolitical tensions, trade uncertainty and concerns surrounding global energy markets. Investors continued to prioritise core real estate assets offering stable income visibility and long-term growth potential.
Prime office investments emerged as the strongest-performing segment during the quarter, recording an estimated 25.7% annual increase. The recovery was supported by tightening vacancy levels and rental growth across gateway markets including Tokyo and Singapore.
Industrial and logistics assets also continued attracting significant investor interest across the region, particularly in markets benefiting from artificial intelligence-linked manufacturing, semiconductor exports, infrastructure expansion and data centre growth. India, Japan, Taiwan and Malaysia were among the markets identified as key beneficiaries of this trend.
Neil Brookes stated that capital deployment across the region remained active despite elevated geopolitical risks. He noted that the recovery in office assets alongside sustained demand for industrial and logistics properties reflected a selective but constructive investment environment.
The report highlighted India as one of the standout investment destinations within Asia Pacific due to strong occupier demand, infrastructure-led expansion and increasing interest in industrial and digital infrastructure assets.
Anurag Mathur stated that India continues to attract investor attention due to rapid growth in logistics infrastructure, data centre development and long-term economic fundamentals. He added that the country’s occupier demand and infrastructure pipeline continue to support investment activity across both core and emerging asset classes.
Cross-border investment activity also strengthened during the quarter. According to the report, Japan and Singapore accounted for a substantial share of international capital flows within the region. Singapore recorded investment sales of SGD 11.48 billion, equivalent to approximately USD 8.95 billion, reflecting an annual increase of nearly 95%.
In Japan, strong occupier demand, limited office supply and positive yield spreads continued supporting asset pricing, with prime office rents in Tokyo’s central business districts touching new highs during the quarter.
The report further indicated growing investor preference for digital infrastructure and technology-linked industrial assets across Asia Pacific markets. Taiwan recorded elevated commercial property transaction levels driven by technology-sector factory acquisitions, while Malaysia witnessed increasing data centre and IT infrastructure-related investment activity.
Separate market assessments by JLL indicated that Asia Pacific commercial real estate investment volumes reached approximately USD 47 billion during Q1 2026, representing a 31% annual increase and the region’s strongest first-quarter performance on record. Cross-border capital flows during the period rose 87% year-on-year to USD 16.3 billion.
Industry analysts believe that easing financing conditions, resilient occupier demand and improving leasing activity across select office and logistics markets are continuing to support investment recovery across Asia Pacific commercial real estate despite ongoing macroeconomic uncertainties.
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