In the first quarter of 2026, real estate investment in the Asia Pacific (APAC) region witnessed a significant year-on-year increase of 19.2%. This surge was largely attributed to a robust demand for prime office spaces and industrial assets in India, according to a recent report by Savills India. The recovery in investment is indicative of the region's resilience, particularly in light of ongoing geopolitical tensions and energy uncertainties. As a focal point for investors, India has recorded strong occupier demand, particularly in sectors such as logistics and data centers, further bolstered by a wave of infrastructure development.
The report highlighted that investments in prime office spaces have rebounded impressively, with a year-on-year increase of approximately 25.7%. This growth is driven by tightening vacancy rates and increasing rental prices in key cities like Tokyo and Singapore. Simultaneously, the industrial and logistics sector continues to attract attention. Factors such as the rise in AI-related manufacturing, the demand for semiconductor exports, and the expansion of data centers have played a crucial role in sustaining investment levels across various markets, including India, Japan, Taiwan, and Malaysia.
Despite the challenges posed by geopolitical dynamics, the sentiment surrounding APAC real estate investments has improved, leading to a resurgence in cross-border capital flows. Investors are becoming increasingly selective, favoring core markets and assets that offer clear income visibility and liquidity. Anurag Mathur, CEO of Savills India, emphasized India’s position as a “high-conviction market” in the region. The long-term fundamentals in India, combined with ongoing demand from occupiers, have made it an attractive destination for investment across both established and emerging asset classes.
Looking ahead, the report anticipates sustained but cautious investment momentum through 2026, particularly in the office and logistics sectors, as well as in industries linked to AI advancements. Structural factors, including technology-driven growth and the need for enhanced data infrastructure, are expected to continue driving investor interest. Conversely, investment activity in China has shown a decline as older strategies are reevaluated, though recent pricing adjustments may rekindle interest from both domestic and international investors. Overall, the APAC real estate landscape is poised for a dynamic evolution, with India at the forefront of this growth trajectory.