Asia Pacific real estate investment demonstrated strong resilience in the first quarter of 2026, rising 19.2% year-on-year according to a report by real estate consultancy Savills. The investment activity remained robust despite challenging geopolitical tensions, global trade uncertainty, and energy supply concerns. As reported by Savills, investors continued to focus on core assets with stable income visibility and liquidity, creating a selective but constructive investment environment across the region. "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."
Prime office investments led the regional recovery during the quarter, rising an estimated 25.7% year-on-year according to the Savills report. This growth was supported by tightening vacancies and rental growth in major gateway cities such as Tokyo and Singapore. According to 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 entering 2026.
India emerged 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." Industrial and logistics assets 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.
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% 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 highlighted growing investor interest in digital infrastructure and industrial assets across the Asia Pacific region. Taiwan recorded one of its highest quarterly commercial property transaction levels, led by factory acquisitions by technology firms. In Malaysia, data centre and IT infrastructure-related acquisitions accounted for more than half of industrial investment activity during the quarter. 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.
