Asia Pacific real estate investment rose 19.2% year-on-year in Q1 2026, driven by strong office transactions, cross-border capital flows, and growing demand for industrial and data centre assets. India remained a key investment destination as investors increased focus on logistics, infrastructure-led development, and technology-driven commercial real estate opportunities.
The Asia Pacific commercial real estate market started 2026 on a strong note, with investment activity rising sharply across office, industrial, and technology-linked assets. According to a new Savills report, regional real estate investment increased 19.2% year-on-year during the first quarter, signalling renewed investor confidence after a period of cautious market activity. The rebound was largely supported by stronger office transactions, improving occupier sentiment, and rising cross-border capital movement into core commercial markets.
Office properties emerged as a major growth driver during the quarter. Prime office investment across Asia Pacific climbed an estimated 25.7% year-on-year, led by gateway cities such as Tokyo and Singapore. Investors continued targeting premium income-generating assets in established business districts where vacancy levels tightened, and rental performance improved steadily. The shift reflects growing confidence in high-quality office assets as companies increasingly prioritise well-connected, experience-driven workplaces in major urban centres.
Office Assets Regain Investor Attention
Tokyo and Singapore remained among the region’s strongest-performing office markets during Q1 2026. In Japan, limited supply, healthy occupier demand, and positive yield spreads continued to support asset pricing. Prime office rents in Tokyo’s Central 5 Wards also reached new highs, reinforcing investor appetite for stabilised Grade A office properties.
Singapore recorded one of the sharpest increases in investment activity during the quarter. The market saw investment sales of nearly S$11.48 billion, representing a year-on-year jump of approximately 95%. Strong cross-border capital inflows and institutional investor participation played a major role in driving transaction momentum across the city-state’s commercial real estate market.
The report also highlighted how industrial and logistics assets remain critical investment themes across the Asia Pacific. Growing demand from AI-driven manufacturing, semiconductor exports, data centre expansion, and digital infrastructure development continued attracting both domestic and international capital. Investors are increasingly viewing logistics parks, warehousing hubs, and data centre-linked developments as long-term growth assets supported by structural changes in technology and supply chains.
India Gains Momentum in Technology-Linked Real Estate
India remained one of the key Asia Pacific markets attracting investor interest during the quarter. According to the report, industrial and logistics assets, data centre growth, and infrastructure-led real estate opportunities continued drawing attention from institutional investors. The country’s expanding digital economy, rapid infrastructure upgrades, and strong occupier demand are helping strengthen its position within the regional commercial real estate landscape.
Across other Asia Pacific markets, investment activity showed mixed trends. China recorded a year-on-year decline in investment volumes as older investment strategies continued unwinding. However, ongoing price corrections began attracting selective interest from both domestic and international investors looking for value opportunities.
Data Centres Continue Shaping Capital Flows
Technology-linked real estate emerged as another defining theme during the quarter. Hong Kong witnessed stronger non-residential investment activity driven by office and hotel transactions, while investors also explored repositioning opportunities such as converting hotels into student housing projects.
Meanwhile, Taiwan and Malaysia experienced growing momentum in technology-oriented commercial assets. Taiwan recorded strong commercial property transactions led by owner-occupied factory acquisitions from technology firms. In Malaysia, more than half of industrial investment activity was linked to data centres and IT infrastructure acquisitions, highlighting the growing influence of digital infrastructure on regional capital flows.
The latest investment trends suggest Asia Pacific’s office and flexible real estate sectors are entering a new growth cycle, supported by technology expansion, infrastructure investment, and rising demand for future-ready commercial assets.
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