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Asia Pacific’s real estate investment market recorded USD 105 billion in transactions during the first half of 2026, marking its strongest first-half performance since 2022, according to Colliers. Office assets accounted for USD 40.2 billion of regional investment, followed by retail at USD 26.7 billion and industrial assets at USD 22.8 billion. Data centres attracted a further USD 6.7 billion as institutional interest in the sector increased. Capital remained concentrated in liquid markets, with China and Japan each attracting more than USD 25 billion, while Australia and Singapore recorded USD 15.8 billion and USD 14.1 billion, respectively. In India, domestic investors accounted for around 57% of investment after capital deployment increased 80% year-on-year, while foreign inflows rose 24% and represented about 43% of total investment.
Asia Pacific’s real estate market recorded USD 105 billion in investment during the first half of 2026, its strongest first-half performance since 2022, as cross-border capital returned and investors increased deployment across markets and asset classes, according to Colliers’ Asia Pacific Capital Markets Snapshot H1 2026 released earlier this month.
Office assets remained the largest recipient of capital across the region, attracting USD 40.2 billion during the six-month period. Retail properties followed with USD 26.7 billion, while industrial assets received USD 22.8 billion. Data centres, meanwhile, attracted USD 6.7 billion, reflecting their growing position as an institutional real estate asset class.
Capital continued to favour core assets and the region’s deepest and most liquid markets. China and Japan each attracted more than USD 25 billion during the first half of 2026. Australia recorded USD 15.8 billion of investment, while Singapore attracted USD 14.1 billion, with its transaction volume already exceeding the full-year total recorded in 2025.
Colliers said Australia, China, Japan and Singapore accounted for a substantial share of APAC investment volumes, highlighting the importance of liquidity in investment decisions. In China, activity continued to be driven largely by domestic players, while foreign owners remained focused on divestments.
India followed a somewhat different investment pattern, with domestic investors emerging as the principal source of capital during H1 2026. Domestic investment increased 80% year-on-year and accounted for approximately 57% of total inflows. Foreign investment also strengthened, with overseas capital rising 24% year-on-year and contributing around 43% of total investment.
The office segment remained central to India’s investment activity, accounting for more than 40% of overall capital deployment during the first half of the year, with domestic investors leading activity. Badal Yagnik, CEO and managing director, Colliers India, said office assets continued to attract investor interest due to broadening occupier demand and strong GCC space uptake.
Yagnik added that office assets were expected to remain a key driver of real estate investment, supported by sustained demand and the growing prominence of office REITs. Leading developers are also increasingly monetising operational assets and recycling capital into new opportunities, according to the report.
Since 2022, India’s office segment has attracted close to USD 14 billion cumulatively, representing between 40% and 50% of total capital deployment each year. At the same time, investors are increasingly looking beyond traditional office, residential, industrial and warehousing and retail assets towards mixed-use developments and alternative assets.
Theo Novak, managing director, Capital Markets, Colliers Asia Pacific, said the first half of 2026 indicated stronger investor confidence in the region’s liquidity, transparency and long-term growth prospects. He noted that capital was returning to traditional sectors such as office, retail and industrial, while structural growth themes such as data centres were also attracting investment.
Source - PTI
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