Asia Pacific Real Estate Investment Jumps 19.2% in Q1 2026: Report

Asia Pacific real estate investment surged 19.2% YoY in Q1 2026, with prime office and industrial assets leading the charge. India has emerged as a key market, benefiting from strong demand for logistics, data centres, and AI-infra, a Savills report finds.

Asia Pacific real estate investment rose 19.2 per cent year-on-year in the first quarter of 2026, with India emerging as one of the key markets benefiting from rising demand for industrial and logistics assets, data centres and AI-linked infrastructure investments, according to a report by real estate consultancy Savills.

The report said investment activity across the Asia Pacific region remained resilient despite geopolitical tensions, global trade uncertainty and energy supply concerns, as investors continued to focus on core assets with stable income visibility and liquidity. Prime office investments led the recovery during the quarter, rising an estimated 25.7 per cent year-on-year, supported by tightening vacancies and rental growth in major gateway cities such as Tokyo and Singapore. Industrial and logistics assets also continued to attract strong investor interest due to growing demand linked to AI-related manufacturing, semiconductor exports, data centre development and infrastructure expansion across markets including India, Japan, Taiwan and Malaysia.

"Asia Pacific entered 2026 amid elevated geopolitical risk, yet capital deployment remains active," said Neil Brookes, Executive Managing Director and Head of Asia Pacific Capital Markets at Savills. "The recovery in prime offices, combined with durable demand for industrial and logistics assets, points to a more selective but constructive investment environment," he added.

India Emerges as a High-Conviction Market

The report highlighted India as one of the standout markets in the region, driven by strong occupier demand and rapid infrastructure-led growth.

"India continues to stand out as a high-conviction market within Asia Pacific, driven by strong demand for industrial and logistics assets, rapid data centre expansion and sustained infrastructure-led growth," said Anurag Mathur, CEO, Savills India. "As global capital becomes more selective, India's long-term fundamentals and occupier demand continue to attract investor interest across core and emerging asset classes," he added.

Regional Investment Highlights

The report noted that cross-border investment activity strengthened during the quarter, with Japan and Singapore accounting for a significant share of international capital flows. Singapore recorded investment sales of SGD 11.48 billion (USD 8.95 billion) in Q1, up nearly 95 per cent year-on-year. In Japan, strong occupier demand, limited supply and positive yield spreads continued to support pricing, with prime office rents in Tokyo's Central 5 Wards touching new highs.

The report also pointed to growing investor interest in digital infrastructure and industrial assets across the Asia Pacific. Taiwan recorded one of its highest quarterly commercial property transaction levels, led by factory acquisitions by technology firms, while in Malaysia, data centre and IT infrastructure-related acquisitions accounted for more than half of industrial investment activity during the quarter.

Investment Outlook for 2026

According to Savills, investment activity in the region is expected to remain selective but stable through 2026, with offices, prime logistics and AI-related sectors likely to continue attracting investor interest as pricing expectations stabilise. (ANI)

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