Mumbai: Asia Pacific’s commercial real estate investment market strengthened in the first half of 2026, with investment volumes rising 22% year-on-year as capital returned to traditional sectors and investor activity broadened across the region, according to Savills’ latest Capital Markets research, Capital Signals.
Retail recorded the strongest growth among the major asset classes, with investment volumes increasing 51% during H1 2026. Office investment rose 22%, while industrial and logistics recorded a 21% increase. At the individual market level, Singapore and Taiwan outperformed, supported by several large transactions. Mainland China and Hong Kong also registered strong year-on-year growth, albeit from a lower base.
The recovery is also accompanied by a shift in how investors are accessing real estate opportunities. Partial-stake acquisitions have reached record levels, supported by partner buyouts and quasi-secondary transactions. Joint ventures and club deals are also becoming more common, increasingly taking the place of traditional pooled investment structures.
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The change reflects investors’ preference for greater alignment, stronger portfolio control and more targeted exposure to sectors and investment themes where they have higher conviction.
Within this regional recovery, India is positioned to benefit from renewed investor interest in commercial real estate. Sustained economic growth, resilient occupier demand, infrastructure expansion and increasing institutional participation have strengthened the country’s position as a long-term investment destination in Asia Pacific.
Anurag Mathur, CEO, Savills India, said, “The broadening recovery across Asia Pacific reflects growing investor confidence in commercial real estate as macroeconomic conditions stabilise and capital returns to core sectors. India is particularly well-positioned within this environment, underpinned by strong economic fundamentals, resilient office demand, expanding industrial and logistics infrastructure, and continued institutional investor interest. As global investors reassess portfolio allocations over the coming years, India is expected to remain a preferred destination due to its favourable demographics, depth of occupier demand and ongoing infrastructure-led growth.”
Another factor likely to influence the region’s investment landscape is the volume of private fund capital approaching maturity. Savills estimates that approximately US$265 billion of assets held by Asia Pacific-focused private funds will mature by 2031, with the largest concentration expected in 2029.
The impending maturity cycle could accelerate portfolio rotation, bringing more traditional office and retail assets to market while encouraging investors to increase allocations to emerging sectors such as data centres and living.
Data centres remain one of the region’s prominent investment themes. Operational capacity across Asia Pacific reached 16.1GW in the second quarter of 2026, while a further 25.5GW was planned or under development. Occupancy was approaching 90%.
As data centre facilities grow in scale, investment structures are evolving alongside the sector. Investors are increasingly showing interest in platform investments, joint ventures and forward-funding arrangements rather than relying solely on single-asset acquisitions.
For India, these changes in regional capital allocation could support investment across both established and emerging real estate asset classes. The country’s expanding digital economy, rising logistics infrastructure requirements, growing institutional ownership and increasingly mature commercial real estate market provide a foundation for attracting capital as investors reassess their Asia Pacific portfolios.
The broader shift in investor strategy also suggests that the next phase of market activity may be shaped as much by how capital is deployed as by where it is deployed. As investors seek resilient, long-duration opportunities, India could benefit from the combination of occupier demand, infrastructure development and institutional participation across its commercial real estate market.
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Nicholas Wilson, Senior Director, Strategic Research & Advisory, Asia Pacific Capital Markets at Savills, said, “The recovery has moved beyond the early, opportunistic phase and is broadening back into the core of the market. Investors are no longer just asking where the value is, but how best to access it. That is why we are seeing record levels of partial-stake and joint-venture activity, as capital chases control, alignment and conviction rather than simply market exposure.
“The maturity wall building towards 2029 will be one of the defining forces of the next few years. It will bring more traditional assets to market at the same time as investors rotate into data centres and living, and that reshaping of portfolios is where the real opportunity lies. Hong Kong is a case in point: it is now at the mature end of its repricing cycle, and history tells us the strongest returns in that market are captured within a short window of the turning point.”
