Global investors are returning to real estate with renewed confidence, signalling a positive investment cycle through 2026 across the Asia-Pacific (APAC) region, according to the Colliers 2026 Global Investor Outlook Report. The study, based on a global survey of institutional investors, indicates improving market fundamentals, strengthened liquidity, and more realistic pricing expectations. These trends are expected to drive higher transaction activity despite persistent cost pressures and geopolitical uncertainties.
APAC Capital Flows Accelerate as Investors Seek Growth
The report highlights a decisive shift in global capital allocation towards the APAC region. APAC-focused capital raising has jumped over 130% since 2024, now accounting for 11% of global real estate fundraising in the first three quarters of 2025. Investors are increasingly targeting markets with strong economic growth and diversification opportunities.
While established destinations like Japan, Australia, and Singapore remain highly preferred, India has emerged as a key growth market for real estate investment within APAC. Expanding middle-class consumption, digital infrastructure development, and a transparent regulatory framework are positioning the region as an attractive long-term investment hub.
India at the Centre of APAC Investment Strategy
The report underscores India’s rising appeal for large-scale capital deployment across core and alternative real estate assets. Investors are particularly interested in land and development-led opportunities, alongside institutional-quality stock in office, residential, industrial and logistics, and data centre segments.
Institutional investments in India totalled USD 4.3 billion during the first nine months of 2025, driven by steady quarterly momentum. With expectations of strong closures in Q4, annual investment volumes for 2025 are projected at USD 5–7 billion, supported by balanced participation from domestic and foreign investors.
Leadership Commentary
Badal Yagnik, CEO & MD, Colliers India, said:
“Investments in India’s real estate sector have demonstrated remarkable resilience. We foresee annual investments of USD 5-7 billion in 2025 and 2026, driven by robust domestic growth, rising urbanization and expanding infrastructure. Both domestic and offshore capital are expected to accelerate, reinforcing India’s position as a resilient, high-potential market.”
Vimal Nadar, National Director & Head of Research, Colliers India, added:
“Office and residential will continue to dominate investments, while industrial & logistics and alternative assets such as data centres will gain traction. Cross-border capital will remain essential as India strengthens its presence among APAC’s preferred destinations.”
Key Sectors to Drive Investments in 2026
Office & Residential
These segments are projected to contribute nearly 60% of India’s investment activity in 2026, supported by sustained occupier demand and a strong development pipeline.
Industrial & Logistics
Investor focus in APAC is led by the I&L sector, driven by e-commerce expansion. Demand for big-box warehousing, last-mile logistics, and cold-storage facilities continues to rise, particularly in India, Japan, and Australia.
Data Centres
Data centre assets are emerging as a high-growth opportunity in Singapore, Australia, and India, supported by hyperscale demand and digital infrastructure expansion.
Retail & Hospitality
Retail assets are regaining investor confidence as supply stabilizes. Hospitality and student housing are expected to attract capital as tourism rebounds and educational migration rises.
India Strengthens Position as Cross-Border Capital Magnet
The survey finds that 64% of APAC investors expect economic improvement in 2026, and nearly 60% are optimistic about liquidity and rental growth. The growing participation of family offices and high-net-worth investors is expected to intensify competition for high-performing assets.
Summarizing market sentiment, Sam Harvey-Jones, COO, Asia Pacific, Colliers, said:
“Investors are shifting decisively toward stability and opportunity as markets regain footing. Improving fundamentals and normalizing pricing expectations are fuelling optimism for 2026.”
Conclusion
With strong economic fundamentals, deepening institutional-grade supply, and expanding participation from foreign and domestic investors, India is positioned to play a central role in driving APAC real estate capital flows through 2026. A steady rise in demand across office, residential, I&L, and data centre assets is expected to keep momentum firm in the coming year.
Also Read: India Leads APAC Real Estate Investments with 88% Growth in H2 2024
