Asia Pacific’s commercial real estate investment market strengthened during the first half of 2026, with investment volumes rising 22% year-on-year as capital returned to the region’s traditional real estate sectors, according to Savills’ latest Capital Signals research.
Retail recorded the strongest recovery during the period, with investment volumes increasing 51% year-on-year. Office investment rose 22%, while industrial and logistics investment increased 21%. At the market level, Singapore and Taiwan recorded strong performance, supported by several large transactions, while Mainland China and Hong Kong also registered year-on-year growth from comparatively lower bases.
The recovery has also been accompanied by a change in investment strategies. Partial-stake acquisitions reached record levels during H1 2026, driven by partner buyouts and quasi-secondary transactions. Joint ventures and club deals are also increasingly being used instead of traditional pooled investment vehicles, as investors seek greater portfolio control, alignment with partners and targeted exposure to preferred sectors.
India is positioned to benefit from the improving investment environment across Asia Pacific. Sustained economic growth, resilient occupier demand, infrastructure development and increasing institutional participation continue to support the country's commercial real estate market.
Anurag Mathur, CEO, Savills India, said the broader recovery across Asia Pacific reflected increasing investor confidence in commercial real estate as macroeconomic conditions stabilised and capital returned to core sectors. He said India was particularly well positioned because of its economic fundamentals, office demand, industrial and logistics infrastructure, demographics and infrastructure-led growth.
The research also identifies a significant volume of private fund capital approaching maturity across the Asia Pacific region. Savills estimates that assets worth approximately USD 265 billion held by Asia Pacific-focused private funds will mature by 2031, with the largest concentration expected in 2029.
The impending maturity of these assets is expected to accelerate portfolio rotation. More traditional office and retail assets could come to market as investors redirect capital towards sectors with stronger long-term growth prospects, including data centres and living.
Data centres have emerged as one of the region’s key investment themes. Operational data centre capacity across Asia Pacific reached 16.1 GW in Q2 2026, with another 25.5 GW planned or under development. Occupancy levels were approaching 90%, supporting investor interest in the sector.
As data centre developments become larger, investors are increasingly considering platform investments, joint ventures and forward-funding arrangements rather than limiting exposure to individual assets.
For India, these changing capital allocation patterns could support investment across both established and emerging real estate sectors. Growth in the digital economy, demand for logistics infrastructure, increasing institutional ownership and the maturation of the commercial real estate market provide a base for further capital inflows.
Nicholas Wilson, Senior Director, Strategic Research & Advisory, Asia Pacific Capital Markets at Savills, said the recovery had moved beyond the initial opportunistic phase and was broadening into the core market. He noted that investors were increasingly focused not only on identifying value but also on determining the most effective structures through which to access it.
Wilson said the expected concentration of fund maturities towards 2029 would be a major factor shaping investment activity over the coming years. The resulting supply of traditional assets, combined with portfolio rotation towards data centres and living sectors, could reshape capital allocation across the region.
For India, the combination of renewed institutional interest, strong occupier fundamentals and emerging opportunities in alternative real estate sectors is expected to support its position within Asia Pacific’s next phase of investment activity.