The Asia Pacific commercial real estate market continued to demonstrate strong investor appetite and momentum at the outset of 2026. Despite a backdrop of geopolitical caution, investment activity delivered its strongest Q1 on record.
Total investment volumes reached USD 47.0 billion, up 31% year-on-year (YoY). This robust start showcases a broader realignment of global capital toward markets combining innovation capacity and growth potential in an increasingly multipolar environment.
Leading the activity was Japan, where volumes reached USD 13.2 billion, despite a 4% YoY decline, with continued focus on office assets. Singapore followed with USD 11.5 billion, surging 433% driven by a mega-fund and portfolio acquisitions. Meanwhile, Australia registered a 49% YoY increase to USD 5.7 billion, sustained by retail-led investment and a strategic pivot toward core-plus and value-add opportunities.
Elsewhere, South Korea posted USD 4.8 billion, down 29%, though hospitality saw strong momentum—a trend also noted in Mainland China, where hotels with stable cash flows are in pronounced demand. Hong Kong showed signs of sustained recovery, with volumes growing 41% YoY to USD 1.6 billion, reflecting increased liquidity in office and retail sectors.
India, where domestic players and Real Estate Investment Trusts (REITs) were active, saw volumes rise 94% YoY to USD 1.5 billion.