Asia-Pacific Real Estate Turns a Corner in 2026 as Capital Regains Conviction
Asia-Pacific Real Estate Turns a Corner in 2026 as Capital Regains Conviction
Asia-Pacific commercial real estate is showing renewed momentum as we enter 2026, driven by improving investor sentiment, stronger occupier fundamentals and a clear focus on income growth rather than speculative repricing.
Key highlights from CBRE’s latest outlook:
• CBRE forecasts total investment volumes in the region will increase between 5% and 10% in 2026, extending the rebound that began in 2025 with $157 billion in transaction activity.
• Net buying intentions, the difference between investors planning to buy versus sell, are expected to climb to 17% in 2026, up from 13% in 2025 and just 5% in 2024, pointing to rising confidence.
• Office assets have reclaimed the top spot as the most preferred sector for investment for the first time since 2020, backed by constrained supply in core markets and improving leasing fundamentals.
• Grade A office completions are forecast to peak at 61.3 million square feet across Asia-Pacific this year, with India and mainland China accounting for more than three-quarters of new supply.
• Global capital continues to target gateway cities — with Tokyo leading cross-border investment for the seventh consecutive year, followed by Sydney, Singapore and Seoul, and Hong Kong returning to the top tier.
• Data centres are increasingly high on investor radar, now among the region’s top four preferred asset classes due to sustained demand from cloud, AI and digital infrastructure.
• Logistics rental growth is expected to continue at a moderated pace, while retail leasing activity is projected to exceed 2025 levels, supported by tight vacancy and shifting tenant demand.
• Across sectors, the theme for 2026 is disciplined capital deployment and an emphasis on durable income streams amid a slower broader economic growth backdrop.
The story across Asia-Pacific is not explosive growth, but strategic re-entry. With improving leasing fundamentals and stabilising pricing, the region is positioning itself as a steady, income-driven allocation in a still-uncertain global cycle.
…more
