India's demand drives 19 pc rise in APAC real estate investment in Q1: Report
New Delhi, May 28
Asia Pacific countries' real estate investment rose 19.2 per cent year‑on‑year in Q1 2026, driven by a rebound in prime offices and strong demand from India, a report said on Thursday.
India emerged as a key growth market within the Asia Pacific region, backed by strong demand for industrial & logistics assets, rapid data centre expansion, and infrastructure-led growth, the report from property consulting firm Savills India said.
Prime office investment led the recovery, rising an estimated 25.7 per cent year-on-year, underpinned by tightening vacancies and rental growth in key gateway cities including Tokyo and Singapore.
Meanwhile, industrial and logistics assets saw sustained investments, supported by demand linked to AI-related manufacturing, semiconductor exports, data centre development and infrastructure investment across markets including Japan, Taiwan, India and Malaysia.
Despite heightened geopolitical tensions and energy uncertainty, growth in Asia Pacific real estate investment stemmed from improved sentiment and renewed cross-border capital flows, although selective activity was seen in core markets and assets offering income visibility and liquidity.
"India continues to stand out as a high-conviction market within Asia Pacific. 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," said Anurag Mathur, CEO, Savills India.
The report forecasted investment momentum to remain firm but measured through 2026, with offices, prime logistics and AI-related sectors continuing to anchor investor interest as pricing expectations stabilise.
Investors preferred industrial and logistics due to structural drivers such as technology-led expansion, semiconductor manufacturing and data centre development.
Cross-border investment activity strengthened during the quarter, with Japan and Singapore accounting for a significant share of international capital flows.
Investment activity remained uneven across the region, with several markets showing early signs of repositioning and re-engagement.
In China, investment volumes declined year-on-year as legacy strategies continued to unwind, although pricing adjustments have begun to attract renewed interest from both domestic and international investors.
— IANS
Reader Comments
Interesting data. I wonder how much of this is actually sustainable long-term, especially with global uncertainties. The report says investment momentum will be "firm but measured" - hopefully that means we're not in for another bubble. Still, positive signs for the region.
As someone working in the real estate sector in Bangalore, I can confirm the demand for prime offices is real. Vacancies are tightening and rents are going up. But we need to ensure affordable housing doesn't get left behind in this rush for commercial assets. A balanced approach is key.
The AI and semiconductor angle is fascinating. India's data centre expansion is clearly drawing global capital. But I'm slightly concerned about the uneven recovery across the region - China is still struggling, and that could have ripple effects on cross-border flows. Need to watch this space carefully.
It's heartening to see India being called a "high-conviction market" by global investors. The infrastructure push is definitely creating jobs and boosting confidence. However, I hope the benefits of this real estate boom reach the common person too - not just big corporates and foreign funds. Sabka saath, sabka vikas! 🙏
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.