India Gains Momentum In APAC Real Estate As Global Investors Seek Growth Markets

After years of heavy allocations to the U.S. and Europe, investors are increasingly turning to the Asia Pacific (APAC) region, where they remain relatively underweight despite strong growth prospects, according to Colliers’ 2026 Global Investor Outlook report.

According to PERE data, APAC-focused capital raising rose more than 130 per cent in Q1–Q3 2025 compared with the same period in 2024, reaching 11 per cent of global fundraising, up from 6 per cent. This signals greater fund deployment in the region. While established markets such as Japan, Australia, and Singapore remain popular, emerging markets, particularly India, are gaining attention as destinations for higher returns.

“The shift back to APAC is positive, especially for Japan and Australia, the region’s core markets. We are also seeing investors who had never considered India now view it as a market for deploying capital at scale in the years ahead,” said Joanne Henderson, National Director of Research, Australia, Colliers.

India Emerging As A Key Market

Seeking higher returns and scalable deployment of capital, investors are drawn to India’s favourable demographics, stable government and robust economic outlook. The booming REIT and IPO market in India is providing fresh liquidity options to investors, which in turn is spurring ever greater cross-border flows to commercial real estate. New market entrants are evaluating and actively deploying into India across asset classes, a trend that will likely continue as institutional grade stock continues to grow.

The residential and office sectors are expected to see the most activity in 2026. Meanwhile, leasing demand for high-quality industrial and office space is attracting significant interest from institutional and private investors. Within the hospitality sector, business hotels are a segment to watch out for, as the supply of premium assets even in major cities remains low.

Commenting on the findings of the report, Premangshu Bhowmick, Senior Director, Capital Markets and Investment Services, Colliers India, said, “India is very well placed from an investor perspective and should do well over the near - to mid-term. Not many markets can offer such attractive investment opportunities. Logistics hubs and industrial parks are proving lucrative, and there is still ample demand in the residential sector across cities.”

Institutional investments in Indian real estate remained resilient, reaching USD 4.3 billion during the first nine months of 2025, underpinned by steady momentum across the first three quarters. With sustained investor confidence, the final quarter is expected to witness a rise in transaction closures, particularly in the office and residential sectors.

Together, these two segments are projected to account for nearly 60 per cent of total annual investments, supported by strong occupier demand and a robust supply pipeline. Overall, investment volumes for 2025 are estimated to range between USD 5 and 7 billion, reflecting the market’s depth and stability despite ongoing global trade uncertainties.

Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India, said, “India’s real estate sector has shown remarkable resilience, underscoring strong fundamentals and investor confidence. In 2025, investments were driven by a healthy mix of foreign and domestic capital. Supported by economic growth, urbanisation, infrastructure expansion and demand across core assets, momentum is set to continue, with rising participation from the US and Asia Pacific, reflecting India’s enduring global appeal.”

APAC Highlights:

According to the survey, 64 per cent of regional investors anticipate economic growth to drive stronger performance next year, while nearly 60 per cent hold a positive outlook on market liquidity and rental growth. Family offices and high-net-worth individuals are showing increased activity, particularly in Hong Kong and Australia, leveraging selective pricing opportunities across key sectors.

Australia: Supported by solid fundamentals and a stable political environment, Australia remains a leading destination for international capital. Sydney and Melbourne continue to attract investment in residential, industrial, and logistics assets, while interest in the retail and office segments is also gaining traction.

Japan: Tokyo and Osaka maintain their positions as prime targets for cross-border investment. The office sector remains most active, while the multifamily segment benefits from continued urban migration. Domestic capital is expected to further support investment volumes, especially in core assets.

India: India is emerging as a compelling investment market for both core and alternative assets, driven by steady economic performance, robust demand-supply balance, and strong long-term growth potential.

China: Domestic investors are increasingly focusing on income-generating assets such as rental housing, large shopping malls, and data centres. Private buyers are targeting smaller office and hospitality transactions, while senior housing in Tier I cities is gaining prominence as a new investment theme.

Singapore: Singapore remains a key hub for core investments, backed by strong liquidity, transparency, and sound fundamentals. Competition is intensifying for data centres and prime office assets, alongside growing investor interest in value-add opportunities.