Tuesday, 02 January 2024 12:17 GMT

India records one of the strongest real estate investment growth rates in APAC; volumes up 29% YoY in 2025- Says Colliers


(MENAFN- sloughpr) Gurgaon, India, MARCH 11, 2026–– Colli’rs’ new Asia Pacific Investment Insights March 2026 report has found total real estate investment volumes across nine key Asia Pacific markets reached USD 162 billion in 2025, marking an 8% yearonyear increase, with momentum building in the second half of the year as buyers and sellers moved closer on pricing expectations. Interestingly, H2 2025 saw investments to the tune of USD 87.3 billion, marking a 11% increase on an annual basis, and 17% increase compared to H1 2025. This growth underscores renewed investor confidence and transaction momentum across the regio’’s key nine marke–s – Australia, Hong Kong, India, Japan, Mainland China, New Zealand, Singapore, South Korea and Taiwan.
South Korea, Japan and Singapore together led investment volumes across the nine key Asia Pacific markets in 2025, highlighting the depth and resilience of these core markets. Interestingly, Singapore and India recorded the strongest yearonyear growth, at 35% and 29% respectively, reflecting improving market fundamentals and expanding investment opportunities.
By sector, office assets remained dominant across Asia Pacific investment activity, supported by sustained occupier demand for highquality, welllocated assets and limited new supply in prime CBD locations. The sector saw a notable increase of 21% YoY at USD 58.5 billion, accounting for 36% of the total investments of 2025. The industrial and logistics sector recorded USD 30.1 billion in investment, ranking second overall despite a moderation from the strong activity seen in 2024.
Retail investments gained momentum, rising 15% yearonyear as improving asset performance and consumer sentiment renewed investor confidence. Alternative asset classes emerged as the fastestgrowing sector, led by strong institutional demand.
Overall, the rebound was underpinned by stronger domestic capital flows, which continued to anchor investment activity across most markets, while crossborder participation remained resilient in key gateway locations including Hong Kong, Singapore and India.
“India continues to strengthen its position as a key investment destination within the APAC region, recording one of the strongest growths in real estate investments among the nine major APAC markets in 2025. While domestic capital continues to drive investment activity across most APAC markets, India has seen relatively stronger cross-border capital movement, with foreign investors accounting for 43% of the USD 8.5 billion inflows during the year. Looking ahead, institutional investments in Indian real estate are expected to remain robust through 2026, supported by the strong economic growth prospects and sustained demand for high-quality assets. At the same time, the impact of global headwinds and ongoing trade negotiations will remain a key monitorable.” said Badal Yagnik, Chief Executive Officer & Managing Director, Colliers Indi .
“Office assets continue to remain the top preference for institutional investors across most APAC markets, including India. The sector dominated real estate investments in five of the nine major APAC markets in 2025, reflecting sustained occupier demand in institutional-grade assets. In India alone, office investments reached about USD 4.5 billion during the year, accounting for over half of the total institutional inflows. Looking ahead, platform deals and partnerships between global investors & domestic developers will continue to gain traction, enabling large-scale capital deployment and reinforce ’ndia’s position as a key market for office investments in the APAC ”egion,” said Vimal Nadar, National Director, Research, Colliers India.
Overall, the real estate investment activity across the Asia Pacific is entering a broad-based recovery phase as improving market clarity, easing financial conditions, and renewed investor confidence support a wider reengagement of capital.
“We are seeing a shift from caution to conviction. Investors are prioritizing clarity, quality and markets with depth of capital. With domestic capital providing a stable foundation and crossborder interest beginning to reengage, the region is entering a more measured, disciplined and increasingly broadbased recovery phase. Office assets continue to provide scale, transparency and income stability, but we are also seeing a clear acceleration into alternatives and selective retail as investors rebalance portfolios and pursue diversification,” said Theo Novak, Managing Director, Capital Markets & Investment Services, Asia Pacific at Colliers.
Looking ahead, Colliers expects Asia Pacific investment momentum to strengthen further in 2026, supported by stabilizing interest rates and inflation, improved visibility on financing conditions and a gradual recovery in crossborder capital flows.
Domestic capital is expected to remain the primary driver of transaction activity, while offshore participation is likely to broaden as risk appetite improves and pricing certainty continues to increase. Core sectors such as office are anticipated to retain depth, while alternatives and selected retail assets are set to attract incremental capital as investors pursue income resilience and longterm growth.
Read the full report here.

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