Asia Pacific Real Estate Investment Jumps 19% in Q1 as India Emerges as Key Logistics and Industrial Hub: Savills India
Gurgaon, May 29, 2026: Asia Pacific real estate investment rose 19.2% year-on-year in the first quarter of 2026, signaling a resilient start to the year despite heightened geopolitical tensions and global trade uncertainties. Improved market sentiment and a revival in cross-border capital flows fueled the growth, though investors remained highly selective, focusing primarily on core markets and liquid, income-generating assets. Prime office investments led the broader regional recovery with an estimated 25.7% year-on-year surge, while industrial, logistics, and data center assets continued to pull significant capital, Savills India said in a press release.
Cross-border activity concentrated heavily in Japan and Singapore during the quarter. Singapore’s investment sales skyrocketed nearly 95% year-on-year to reach S$11.48 billion, while Japan maintained robust pricing driven by strong occupier demand and record-high office rents in Tokyo. Elsewhere, response remained varied; China experienced a decline in volume amid ongoing strategy shifts, Hong Kong saw a lift in non-residential deals like hotel-to-student housing conversions, Taiwan hit a quarterly high in factory acquisitions, and tech-driven infrastructure made up over half of Malaysia’s industrial investment.
Commenting on the regional environment, Neil Brookes, Executive Managing Director and Head of Asia Pacific Capital Markets at Savills, said, “Asia Pacific entered 2026 amid elevated geopolitical risk, yet capital deployment remains active. The recovery in prime offices, combined with durable demand for industrial and logistics assets, points to a more selective but constructive investment environment.”
India stood out as a primary beneficiary of this structural shift, drawing immense investor interest through its rapid data center expansion and AI-led infrastructure growth. Highlighting this momentum, Anurag Mathur, CEO, Savills India, said, “India continues to stand out as a high-conviction market within Asia Pacific, driven by strong demand for industrial and logistics assets, rapid data centre expansion and sustained infrastructure-led growth. As global capital becomes more selective, India’s long-term fundamentals and occupier demand continue to attract investor interest across core and emerging asset classes.”
