Asia Pacific Real Estate Investment Rises 19% in Q1 2026: Report

New Delhi, May 29: Asia Pacific real estate investment rose 19.2% in Q1 2026, supported by improved investor sentiment, recovery in office transactions and stronger cross-border capital flows.

Office and Industrial Sectors

Prime office investment rose an estimated 25.7 per cent year-on-year during the quarter, led by gateway cities such as Tokyo and Singapore, where vacancies tightened and rents improved. Industrial and logistics assets continued to attract capital across the region, supported by demand from AI-related manufacturing, semiconductor exports, data centres and infrastructure investment.

India's Position

India was among the key Asia Pacific markets seeing investor interest in industrial and logistics assets, data centre expansion and infrastructure-led real estate opportunities, the report said.

Cross-Border Flows

Cross-border investment was concentrated largely in Japan and Singapore during the quarter. Singapore recorded investment sales of S$11.48 billion in Q1 2026, up nearly 95 per cent year-on-year. In Japan, occupier demand, limited supply and positive yield spreads supported pricing, with prime office rents in Tokyo's Central 5 Wards reaching new highs.

Other Markets

Investment trends remained mixed across other markets. In China, investment volumes declined year-on-year as older investment strategies continued to unwind, though price corrections started attracting interest. Hong Kong saw higher non-residential investment driven by office and hotel deals. Taiwan recorded strong commercial property transactions led by owner-occupied factory acquisitions by technology companies. Malaysia saw data centre and IT infrastructure-related acquisitions account for more than half of industrial investment activity.