The Asia Pacific (APAC) region witnessed a remarkable recovery in real estate investment in 2025, with total transactions reaching $162 billion. This figure represents an 8 percent increase compared to the previous year, as detailed in Colliers' Asia Pacific Investment Insights March 2026 report. The resurgence in investment activity was particularly pronounced during the latter half of the year, where a total of $87.3 billion was recorded, marking an 11 percent annual increase and a notable 17 percent rise from the first half of 2025. This rebound underscores a renewed alignment of pricing expectations between buyers and sellers, fostering an environment of increased investor confidence across nine major APAC markets, including India, Japan, and Australia.
Among the APAC markets, South Korea, Japan, and Singapore exhibited the highest overall investment volumes. However, it was India and Singapore that demonstrated the most significant year-on-year growth, with investment volumes rising by 29 percent and 35 percent, respectively. This surge in India can be attributed to improving market fundamentals and the expansion of investment opportunities, which have made the country an increasingly attractive destination for real estate investors. As institutions and individual investors alike look to capitalize on these favorable conditions, the Indian market has positioned itself as a key player in the region.
In terms of investment sectors, office assets continued to dominate, accounting for $58.5 billion or 36 percent of the total real estate investments in 2025. This sector saw a 21 percent year-on-year increase, driven by sustained demand for high-quality office spaces and limited new supply in prime business districts. Following closely, the industrial and logistics sector garnered $30.1 billion in investments, although this represented a slight moderation from the previous year's robust activity. On the other hand, retail investments experienced a 15 percent increase year-on-year to $29.7 billion, buoyed by improving asset performance and growing consumer confidence.
Moreover, alternative asset classes emerged as the fastest-growing segment within the real estate market, surging an impressive 191 percent. This dramatic increase reflects a growing institutional interest in diversifying portfolios, as investors seek to adapt to changing market dynamics. Overall, the significant rebound in real estate investment across APAC, particularly in India, signals a promising outlook for the sector as economic conditions improve and investor sentiment strengthens, paving the way for continued growth in the coming years.