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Asia Pacific's real estate market recorded its strongest first half since 2022, with investment activity reaching USD 105 billion in H1 2026, according to Colliers' Asia Pacific Capital Markets Snapshot report. Office assets led investment activity across the region, with USD 40.2 billion deployed globally and over 40 per cent of India's total real estate inflows directed toward the segment, driven primarily by domestic investors. Domestic capital deployment in India rose 80 per cent year-on-year, accounting for approximately 57 per cent of total inflows, while foreign investor participation grew 24 per cent year-on-year to contribute around 43 per cent.
Asia Pacific's real estate market recorded its strongest first-half performance since 2022, with investment activity reaching USD 105 billion in H1 2026, as cross-border capital returned to the region and investors deployed funds across a broad mix of markets and sectors, according to Colliers' Asia Pacific Capital Markets Snapshot H1 2026 report.
Office assets continued to lead investment activity across the APAC region, including India, during the period. The office segment alone attracted investments of USD 40.2 billion in the first half of the year, reinforcing its position as the region's preferred asset class. Retail and industrial assets followed, drawing USD 26.7 billion and USD 22.8 billion respectively, as investors responded to evolving consumer demand and continued growth in logistics activity. Data centres also strengthened their standing as an emerging institutional asset class, securing USD 6.7 billion in investment during the period.
In India specifically, the office segment accounted for over 40 per cent of overall real estate investments during H1 2026, led primarily by domestic investors. Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India, said office assets continued to attract significant investor interest, supported by broadening demand across occupier segments and strong uptake of space by global capability centres. He said the segment was expected to remain the key driver of real estate investment in India in the coming years, supported by demand and the growing prominence of office REITs, as developers increasingly monetise operational assets and recycle capital into new opportunities.
Since 2022, the office segment in India has cumulatively attracted close to USD 14 billion in investment, accounting for 40 to 50 per cent of overall capital deployment in the country each year. Even as the segment retains its dominant share, investors are increasingly targeting mixed-use developments and alternative assets to diversify exposure across India's real estate market, with foreign capital continuing to drive long-term interest in segments beyond the traditional office, residential, industrial, warehousing and retail categories.
Domestic investors emerged as the primary drivers of India's real estate investment activity during H1 2026, even as foreign investors led acquisitions across most other APAC markets. Domestic capital deployment in India rose 80 per cent year-on-year, accounting for approximately 57 per cent of total inflows into the country's real estate sector. Foreign investor sentiment also strengthened during the period, with overseas capital inflows rising 24 per cent year-on-year to contribute around 43 per cent of total investment in India. According to the report, this combination of strengthening domestic participation and returning foreign capital has created a balanced investment ecosystem, providing momentum for continued real estate investment activity in the coming quarters.
At a regional level, capital remained concentrated in APAC's most liquid and transparent markets. China and Japan each attracted more than USD 25 billion in investment during the first six months of 2026, while Australia recorded USD 15.8 billion. Singapore emerged as a standout performer, with USD 14.1 billion in transactions already exceeding its full-year 2025 total. China's market continued to be dominated by local players, with foreign owners in that market remaining focused primarily on divestment.
Theo Novak, Managing Director, Capital Markets, Colliers Asia Pacific, described the first half of 2026 as an important turning point for the region's real estate investment activity, noting that the period's performance reflected growing investor confidence in the region's liquidity, transparency and long-term growth prospects, with capital increasingly flowing back into traditional sectors such as office, retail and industrial assets, alongside continued interest in structural growth themes including data centres.
Source: PTI
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