APAC investment volumes up 22% in H1 2026: Savills India

Investment volumes in the Asia-Pacific (APAC) commercial real estate market increased by 22% year-on-year in the first half of 2026, according to a report by Savills India. The growth was driven by strong investor confidence in key markets like India, Japan, and South Korea, as well as a rebound in office and logistics assets. The report highlights that total investment reached approximately USD 78 billion during H1 2026, up from USD 64 billion in the same period last year. This marks a significant acceleration compared to the 8% growth witnessed in H1 2025, indicating a robust recovery in the region's property market.

India emerged as one of the standout performers, with investment volumes surging by 38% to USD 4.5 billion in H1 2026, compared to USD 3.3 billion in H1 2025. The country's office sector attracted the bulk of the capital, accounting for 62% of total inflows, followed by industrial and logistics assets at 23%. Foreign investors contributed 55% of the total investments in India, reflecting growing global interest in the country's commercial real estate. According to the report, the average deal size in India increased to USD 85 million, up from USD 70 million a year ago, indicating a trend towards larger transactions.

Japan remained the largest market in the region, with investment volumes rising by 18% to USD 32 billion, driven by strong demand for office properties in Tokyo and Osaka. South Korea also posted a 15% growth, reaching USD 12 billion, supported by logistics and data center investments. Australia saw a modest 6% increase to USD 15 billion, while Hong Kong and Singapore recorded growth of 12% and 9% respectively. The report attributes the overall growth to lower interest rates, improved economic sentiment, and a recovery in cross-border capital flows, which rose by 25% to USD 30 billion across APAC.

Looking ahead, Savills India expects the momentum to continue in the second half of 2026, with full-year volumes projected to exceed USD 160 billion. However, analysts caution that geopolitical tensions and rising construction costs could temper growth in some markets. The report also notes that environmental, social, and governance (ESG) criteria are playing an increasingly important role in investment decisions, with 40% of surveyed investors stating they would pay a premium for green-certified buildings.

"The strong rebound in APAC investment volumes underscores the region's resilience and attractiveness to global capital, with India emerging as a key bright spot," said analysts at Savills India.

As the market evolves, investors are increasingly focusing on core assets in prime locations, as well as alternative sectors such as data centers and life sciences. The report concludes that while challenges remain, the overall outlook for APAC real estate remains positive, driven by urbanization, technological advancement, and favorable demographics. For more insights and detailed data, stay tuned to our platform.

To get the latest updates on real estate trends and investment opportunities, visit https://markettomoney.co.in.