- Real estate investments across the top 9 APAC markets reach USD 71.9 billion in H1 2025, a 6% YoY decline
- Domestic capital continues to drive investments across most markets, while foreign investor appetite remains strong, particularly in India & Australia
- 7 of the top 10 global destinations for land & development sites are located in APAC; India stands fourth
GURUGRAM, India, Sept. 22, 2025 /PRNewswire/ — Real estate investments across the nine APAC markets – Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan, reached USD 71.9 billion in H1 2025, marking a modest 6% YoY decline amid ongoing trade volatilities and global headwinds, according to Colliers’ latest research report – ‘Investment Insights H1 2025’ (https://www.colliers.com/en-in/research/asia-pacific-investment-insights-h1-2025). Looking ahead, the second half of 2025 is expected to perform better, supported by stabilizing interest rates, robust domestic investments and increasing diversification in capital allocation within the APAC countries.
Colliers also released its ‘Global Capital Flows Report – September 2025‘ (https://www.colliers.com/en-in/research/global-capital-flows-september-2025), outlining the top 10 global sources and destinations for cross-border real estate capital. The report underscores Asia Pacific’s growing influence, with Singapore, Japan, and Hong Kong featuring among the top 10 global sources of capital in H1 2025. At the same time, Japan and Australia are among the top 10 global capital destinations in standing assets, reflecting sustained investor confidence in APAC’s economic fundamentals and asset quality. Notably, seven APAC markets were featured in the top 10 global destinations for land and development sites, with India featuring prominently at the fourth place.
“India continues to stand out as a promising country within Asia Pacific’s real estate investment landscape. Foreign investments remained strong at USD 1.6 billion and accounted for around 52% of the institutional investments in India during H1 2025. Interestingly, APAC investors accounted for over one-third of the foreign inflows into the country in the first half of the year, reiterating India’s strategic importance in cross-border capital flows. With strong demand for high quality spaces, overhauling & simplification of GST regulations and anticipation of elevated consumption levels in the upcoming festive season, institutional investors are confident about their India exposure. Real estate investments in 2025 are likely to end on a high note, with core assets like residential and office continuing to demonstrate high traction,” said Badal Yagnik, Chief Executive Officer, Colliers India.
Of the total investments of USD 71.9 billion across the nine APAC markets, office assets remained the most sought-after, accounting for 36% of total investment volumes in H1 2025, with South Korea and Japan leading the charge. Retail investments, meanwhile, saw a notable upswing, with investment rising 13% year-on-year, driven by investments in Australia, South Korea and Mainland China. While industrial and logistics volumes softened at the APAC level, Taiwan stood out with a 46% YoY increase in the segment. Interestingly, real estate investments across majority of the APAC markets were driven by domestic capital, while offshore investor interest remained relatively strong in India and Australia.
India witnessed strong capital inflows to the tune of USD 3.0 billion in H1 2025. While this was a 15% YoY decline, overall investor interest remained intact. Although foreign capital continued to dominate overall investments, domestic capital deployment gained significant traction, surging 53% YoY. Around 48% of the real estate investments during H1 2025 came from domestic investors.
Residential and office assets together drove over half of the investment inflows in H1 2025, with residential assets leading at USD 0.8 billion. Within the office segment, institutional investors are increasingly acquiring developmental assets by partnering with local developers. Investments in early-stage activities like land acquisition and construction have also picked up significant pace in recent times. Additionally, mixed-use and retail assets too saw a notable surge, together accounting for more than 30% of the real estate investments in India during H1 2025, up from 7% share during the corresponding period in 2024.
“India’s prominence in the Asia Pacific region continues to grow, driven by strong demand traction across real estate asset classes. Investor confidence is reflected in its recent rise to fourth place in terms of cross-border capital deployment in land and development sites, up from seventh position in the previous quarter. Real estate investments in India continue to benefit from favorable policies, improving yield spreads, and a growing appetite for asset diversification within the broader APAC region. The second half of 2025 is poised to perform equally well, with rising investments in both core segments like office and residential, along with traction in alternative assets such as data centers, senior living, life sciences etc.,” said Vimal Nadar, National Director & Head of Research, Colliers India.
Apart from India, the improving consumer sentiment and renewed investor interest in income-generating retail assets is particularly strong in central and secondary business districts of major APAC markets. Large-scale shopping centers are also experiencing renewed optimism, particularly in high-density locations where population growth is accelerating. The real estate sector in APAC continues to evolve with mixed-use developments integrating residential, entertainment, and lifestyle offerings, further enhancing resilience and long-term value.
Lucy Mallick, International Capital Lead at Colliers said, “Investment volumes across global capital markets remained subdued in the first half of 2025. Despite this, Asia Pacific is showing signs of strategic resilience, with sectoral shifts and fundraising momentum that reflect evolving investor priorities. With inflation easing and stability in monetary policy across key markets, we expect capital flows to accelerate in the second half of 2025.”
The second half of 2025 is expected to bring renewed momentum across key APAC markets. With yield spreads improving, investor confidence is set to strengthen across asset classes including alternative assets.
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