Global real estate capital is beginning to flow with more confidence, and Asia Pacific is emerging as the region where investors want to place their long-term bets. This is the central message in Colliers’ 2026 Global Investor Outlook Report, which captures how investor sentiment has shifted after two years of cautious activity and uneven pricing. The report draws on proprietary research and a global survey of institutional investors, showing that market fundamentals are firming up, liquidity is returning, and investors are actively looking for diversification.
The Asia Pacific findings point to a decisive tilt in global capital allocation. APAC-focused fundraising has jumped more than 130 percent since 2024, and now accounts for 11 percent of global capital raised in 2025. Investors are looking for regions that offer a mix of stability, demand growth and innovation, and APAC checks all three boxes. While markets like Japan, Australia and Singapore continue to be favourites, India is emerging as one of the most promising destinations for investors seeking higher returns and room to scale.
What is driving this shift? One factor is the region’s growing economic weight, propelled by an expanding middle class and a wave of digital and industrial transformation.
Another is the desire among global investors to rebalance portfolios after a challenging couple of years marked by inflation, rising costs and geopolitical uncertainty. APAC is seen as a region where market corrections have taken place, rents are holding steady and long-term fundamentals remain intact.
India stands out in this landscape. The report highlights the country as a rising hub for large-scale deployment of global capital across offices, residential, industrial and warehousing, and a growing range of alternative assets like data centres. Strong domestic consumption, solid economic growth forecasts, and a stable policy climate are helping India build a narrative of resilience. Investors are also paying attention to the depth and quality of institutional-grade stock coming to market, which is allowing them to deploy larger sums across more segments.
According to the report, India’s real estate investment activity is expected to remain firm through 2026. Institutional inflows reached USD 4.3 billion in the first nine months of 2025, backed by steady momentum across core segments. The final quarter of the year is expected to see a rush in deal closures, particularly in the office and residential markets, which together will likely account for nearly 60 percent of annual volumes. For 2025 overall, investments are projected to close in the USD 5 - 7 billion range.
Badal Yagnik, Colliers India’s Chief Executive Officer and Managing Director, underscored this confidence, saying that both domestic and offshore capital are showing greater conviction. He highlighted India’s structural strengths - economic growth, rising urbanisation, new infrastructure and strong consumption, as the key forces pulling investors in. Yagnik expects investment volumes in 2025 and 2026 to remain in the USD 5–7 billion band annually, supported by a healthy mix of foreign and domestic players.
A stronger 2026 seems likely. Colliers’ National Director and Head of Research, Vimal Nadar, expects office and residential assets to continue dominating investments next year. Industrial and logistics assets should see renewed traction as supply chains expand and e-commerce continues to grow. Within alternatives, data centres stand out as one of the most active segments, supported by rising digital infrastructure needs and large hyperscale requirements. Cross-border investors remain central to this momentum, with interest particularly strong from the US and Asia-Pacific regions.
The broader APAC picture mirrors this optimism. According to the survey, about 64 percent of investors in the region expect better economic growth next year, and nearly 60 percent are positive about rental growth and liquidity. Family offices and high-net-worth investors are becoming more active, especially in Hong Kong and Australia, where they are capitalising on unique pricing opportunities.
Australia remains one of the most stable destinations for international capital, supported by a transparent legal system and steady economic performance. Sydney and Melbourne continue to attract investment, especially in residential and industrial and logistics assets. Japan’s Tokyo and Osaka are expected to maintain strong demand, driven by resilient office performance and urban migration supporting multifamily housing. Singapore remains a core market, valued for its liquidity and clarity, with intense competition expected for prime office and data centre assets.
China is seeing domestic investors turn their focus to income-generating assets like rental housing, large malls and data centres, even as private buyers pursue smaller deals in office and hospitality. Senior housing in top cities is emerging as a promising new category.
Across the region, certain sectors are drawing more sustained attention. Industrial and logistics assets remain top picks, with “big box” warehousing and last-mile logistics leading investor interest. Cold storage facilities are also gaining traction. The office sector is seeing renewed confidence as rents stabilise and demand strengthens in key APAC markets. Retail, which went through overcorrections in many cities, is regaining investor interest, especially neighbourhood centres and high-street locations where supply is more balanced. Hospitality and student housing round out the picture, with tourism revival and student mobility adding fresh energy.
In a year where global markets are still watching inflation, interest rates and geopolitical flashpoints, APAC’s real estate landscape is presenting a more balanced mix of risk and opportunity. Investors are looking to re-enter, reposition and participate in growth-led themes. Colliers’ report suggests that 2026 could be a year where capital flows with more conviction, and India’s role in this shift will likely be larger than before.
