Office assets and global capital power real estate investment surge

Amid somewhat negative sentiment triggered by geopolitical tensions and the war in West Asia, India has recorded one of the strongest real estate investment growth rates in the Asia-Pacific (APAC) region, with volumes rising 29 per cent year-on-year in 2025.

India continues to strengthen its position as a key investment destination within APAC, recording one of the strongest growth rates in real estate investments among the nine major markets in 2025.

While domestic capital continues to drive investment activity across most APAC markets, India has witnessed relatively stronger cross-border capital movement, with foreign investors accounting for 43 per cent of the $8.5 billion inflows during the year.

According to a new Asia Pacific Investment Insights March 2026 report by Colliers, total real estate investment volumes across nine key APAC markets reached $162 billion in 2025, marking an 8 per cent year-on-year increase. Momentum gathered in the second half of the year as buyers and sellers moved closer on pricing expectations.

The second half of 2025 alone saw investments worth $87.3 billion, reflecting an 11 per cent increase year-on-year and a 17 per cent jump compared to the first half of the year.

The growth highlights renewed investor confidence and transaction momentum across the region’s nine major markets, including Australia, Hong Kong, India, Japan, Mainland China, New Zealand, Singapore, South Korea and Taiwan.

Among these markets, South Korea, Japan and Singapore led overall investment volumes in 2025, highlighting the depth and resilience of these core markets. Interestingly, Singapore and India recorded the strongest year-on-year growth, at 35 per cent and 29 per cent respectively, reflecting improving market fundamentals and expanding investment opportunities.

Office assets continued to remain the top preference for institutional investors across most APAC markets, including India. The sector dominated real estate investments in five of the nine major APAC markets in 2025, reflecting sustained occupier demand for institutional-grade assets.

In India alone, office investments reached about $4.5 billion during the year, accounting for more than half of the total institutional inflows.

Going forward, platform deals and partnerships between global investors and domestic developers are expected to gain traction, enabling large-scale capital deployment and reinforcing India’s position as a key office investment destination in the APAC region.

Across Asia Pacific, office assets remained dominant in investment activity, supported by sustained occupier demand for high-quality, well-located properties and limited new supply in prime CBD locations. The sector recorded a 21 per cent year-on-year increase, reaching $58.5 billion and accounting for 36 per cent of total investments in 2025.

The industrial and logistics sector ranked second, attracting $30.1 billion in investments, although activity moderated slightly compared to the strong momentum seen in 2024. Retail investments also gathered pace, rising 15 per cent year-on-year as improving asset performance and consumer sentiment renewed investor confidence.

Meanwhile, alternative asset classes emerged as the fastest-growing segment, driven by strong institutional demand.

Sector analysts note that the rebound in investments was underpinned by stronger domestic capital flows, which continued to anchor investment activity across most markets, while cross-border participation remained resilient in key gateway locations such as Hong Kong, Singapore and India.

Looking ahead, institutional investments in Indian real estate are expected to remain robust through 2026, supported by strong economic growth prospects and sustained demand for high-quality assets. However, the impact of global headwinds and ongoing trade negotiations will remain a key factor to watch.

If current trends continue, domestic capital is likely to remain the primary driver of transactions, while offshore participation may broaden as investor risk appetite improves and pricing certainty increases.

Core sectors such as office are expected to retain depth, while alternative assets and select retail properties may attract incremental capital as investors pursue income stability and long-term growth.