Asia-Pacific real estate is staging a cautious comeback, with investors signaling a renewed appetite for commercial property acquisitions in 2026 as market conditions stabilize and income visibility improves.
A new survey from CBRE Group shows 57% of regional investors intend to expand their property holdings this year, reflecting a steady shift away from the defensive strategies that dominated the past two years. Net buying intentions–a closely watched gauge of sentiment–rose to 17%, continuing a multi-year climb from 13% in 2025 and just 5% in 2024.
The improving outlook is being underpinned by a combination of firmer occupier demand, a thinning development pipeline and gradually loosening financing conditions. Together, those factors are prompting investors to re-enter the market with a sharper focus on assets capable of delivering durable rental growth.
Office properties have emerged as the leading target for capital deployment for the first time in six years, overtaking industrial and logistics assets that had dominated allocations during the pandemic-era e-commerce boom. The resurgence is most pronounced in gateway markets such as Tokyo, Sydney and Singapore, where high occupancy levels and limited new supply are supporting rent growth and stabilizing valuations.
Cross-border capital continues to gravitate toward Tokyo, which retains its position as the region’s most favored investment destination for a seventh consecutive year. Investors are drawn by relatively low borrowing costs and consistent income streams. Sydney ranks next, followed by Singapore and Seoul, while Hong Kong has re-entered the top tier amid a pickup in activity tied to residential conversions and hotel repositioning.
While offices lead, industrial and logistics assets remain firmly in focus, with roughly one-fifth of investors prioritizing the sector amid expectations that new supply will taper off after 2027. Structural demand linked to e-commerce continues to provide long-term support. Meanwhile, rental housing–particularly build-to-rent–has gained traction, alongside rising institutional interest in data centers as digital infrastructure becomes increasingly embedded in portfolio strategies.
Investment approaches are also evolving. Core-plus and value-add strategies now dominate, accounting for more than 60% of investor preferences, as buyers position for rental-driven upside rather than relying on distressed pricing. Opportunistic plays have lost favor, reflecting a decline in forced sales and persistently high construction and labor costs.
Real estate investment trusts across Asia-Pacific are expected to be among the most active buyers this year, while private investors may begin trimming holdings acquired during earlier market dislocations.
Despite the improving tone, risks remain. Investors cite rising construction and labor expenses as the most significant headwind, overtaking interest rates for the first time. Geopolitical uncertainty continues to weigh on sentiment in key markets such as China and India, while shifting central bank signals in Japan and Australia have reintroduced concerns about the path of borrowing costs.
Even so, the broader trajectory points toward a measured recovery–one defined less by exuberance and more by disciplined capital deployment into high-quality assets with clear, income-generating potential.
English