Real estate investment across the Asia Pacific (APAC) region rebounded strongly in 2025, reaching $162 billion, an 8 per cent year-on-year increase, according to the latest Asia Pacific Investment Insights March 2026 report by Colliers. The growth was largely driven by stronger momentum in the second half of the year as buyers and sellers aligned their pricing expectations.
Investment activity accelerated significantly during the latter half of the year, with $87.3 billion recorded in H2 2025, marking an 11 per cent annual increase and a 17 per cent rise compared with the first half of the year. The rebound highlights renewed investor confidence across nine major APAC markets including Australia, Hong Kong, India, Japan, Mainland China, New Zealand, Singapore, South Korea and Taiwan.
Among these markets, South Korea, Japan and Singapore led overall investment volumes. However, Singapore and India recorded the strongest year-on-year growth, with investment volumes rising 35 per cent and 29 per cent respectively, reflecting improving market fundamentals and expanding investment opportunities.
Sector-wise, office assets remained the dominant investment class across the region. Investments in office properties rose 21 per cent year-on-year to $58.5 billion, accounting for 36 per cent of total real estate investments in 2025. The growth was supported by sustained occupier demand for high-quality assets and limited new supply in prime central business districts.
The industrial and logistics sector ranked second with $30.1 billion in investments, although activity moderated slightly from the strong levels seen in 2024. Meanwhile, retail investments increased 15 per cent year-on-year to $29.7 billion, driven by improving asset performance and stronger consumer sentiment. Alternative asset classes emerged as the fastest-growing segment, surging 191 per cent, reflecting rising institutional interest in portfolio diversification.
