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Commercial real estate investment across the Asia Pacific region increased 27% year-on-year during the first half of 2026, supported by stronger office leasing activity and continued rental growth, according to CBRE's 2026 Asia Pacific Real Estate Market Outlook Mid-Year Review. Office investment volumes rose 29%, with Singapore leading regional activity, while Hong Kong SAR recorded improvement and mainland China showed signs of stabilisation. The report also highlighted resilient demand for Grade A office space, driven by artificial intelligence-related occupiers in Singapore and Global Capability Centres (GCCs) in India. Across logistics, retail and hospitality, demand remained concentrated in prime assets amid constrained new supply.
Commercial real estate investment across the Asia Pacific region increased by 27% year-on-year during the first half of 2026, reflecting improving market activity across most sectors and geographies, according to CBRE's 2026 Asia Pacific Real Estate Market Outlook Mid-Year Review. The report indicates that office assets continued to attract investor interest, while leasing demand remained resilient despite ongoing geopolitical uncertainty.
Office investment volumes rose 29% compared with the corresponding period last year, making the sector one of the principal contributors to the region's investment growth. CBRE noted that Singapore led regional investment activity, while transaction volumes improved in Hong Kong SAR and began to stabilise in mainland China.
Greg Hyland, Head of Capital Markets, Asia Pacific at CBRE, said the regional investment market has progressed beyond the recovery phase, with investors increasingly targeting markets and asset classes capable of delivering stable income streams. He identified Tokyo, Sydney and Singapore as markets where sustained rental growth continues to support investor interest.
The report highlighted continued resilience in the office leasing market, supported by tightening supply conditions. New Grade A office completions across mature Asia Pacific markets declined 38% year-on-year during the first half of 2026, with higher construction costs and constrained development pipelines expected to limit future supply.
Demand for premium office space remained robust across several markets. According to CBRE, leasing activity in Singapore was supported by occupiers linked to the artificial intelligence sector, while Global Capability Centres (GCCs) continued to drive office demand in India. In mainland China, occupiers increasingly upgraded to higher-quality office buildings. The consultancy expects rental growth and leasing momentum to continue during the remainder of the year.
Ada Choi, Head of Research, Asia Pacific at CBRE, said that although geopolitical developments have created uncertainty, occupier demand has remained resilient. She noted that organisations continue to prioritise premium office space in markets including Tokyo, Hong Kong SAR and Sydney as they focus on talent attraction, workplace quality and long-term operational requirements.
Beyond the office sector, the report indicated that logistics leasing demand remains concentrated in modern, strategically located facilities, with the performance gap between prime and secondary assets continuing to widen. A shrinking development pipeline from 2027 onwards is expected to support rental growth across several regional markets. Greater Tokyo is forecast to benefit from strengthening rental growth, while India and Australia are expected to experience more varied conditions due to softer expansion demand and continuing supply-side pressures.
In the retail segment, CBRE expects limited new supply and sustained demand for prime retail space to support leasing activity during the second half of 2026. The consultancy attributed this trend to the expansion of new-to-market Asian brands and growing adoption of experiential retail formats. Prime retail assets are expected to outperform as consumer preferences continue to shift towards experience-led destinations.
The report also noted improving performance in the hospitality sector. Although reduced flight connectivity from the Middle East and higher fuel costs have moderated occupancy growth in some markets, hotels across most of the region have recorded year-on-year increases in revenue per available room (RevPAR), primarily through higher average daily room rates. CBRE added that major events and concerts are increasingly supporting hotel demand, while elevated construction costs in developed markets continue to limit new hotel supply to predominantly high-end developments.
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