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Real estate investments across nine major Asia Pacific (APAC) markets, including India, recorded USD 71.9 billion in the first half of the year, reflecting a 6% year-on-year decline amid global economic headwinds. Despite subdued volumes, APAC maintained dominance, with seven of its markets ranking among the top 10 global destinations for land and development. India moved to fourth place, buoyed by policy support, investor confidence, and rising demand across asset classes. Experts suggested that stabilising interest rates and stronger domestic flows could drive a stronger second half.
Real estate investments across nine APAC markets - Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan - reached USD 71.9 billion during the first half of the year, marking a 6% year-on-year decline. Colliers' research highlighted that ongoing trade volatilities and broader global challenges contributed to the slowdown. However, the outlook for the second half was seen as more positive, supported by stabilising interest rates, strong domestic investments, and greater diversification in capital allocation. Advertisement
Colliers' Global Capital Flows Report placed Singapore, Japan, and Hong Kong among the top 10 global sources of capital, while Japan and Australia ranked among the top destinations for investments in standing assets. The report further noted that seven APAC markets featured in the top 10 destinations for land and development sites, with India moving up to fourth place.
According to Colliers India's research head Vimal Nadar, India's growing prominence in APAC is being driven by demand across multiple asset classes, favourable government policies, attractive yield spreads, and diversification strategies. He explained that India had risen from seventh to fourth place in cross-border capital deployment in land and development sites, and that the second half of the year was expected to see sustained activity across office, residential, and emerging segments such as data centres, senior living, and life sciences.
Alongside India, renewed investor confidence was seen in retail assets across central and secondary business districts of major APAC markets, with large shopping centres in densely populated areas also witnessing growing optimism. Mixed-use developments integrating residential, lifestyle, and entertainment elements continued to enhance resilience and long-term value across the region.
Colliers' international capital lead Lucy Mallick remarked that global capital markets had been subdued in the first half, but APAC demonstrated resilience through sectoral shifts and new fundraising momentum. She suggested that with inflation easing and monetary policy stabilising in key markets, capital flows were expected to pick up pace in the second half.
India, in particular, strengthened its presence, moving into the top ranks as investor demand expanded across traditional and alternative asset classes. With macroeconomic stability improving, easing inflation, and diversified capital deployment, the second half is expected to deliver stronger investment performance across the APAC real estate sector.
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