Global real estate capital pivots to Asia Pacific as investors reset portfolios

Capital for APAC more than doubled in 2025.

Global real estate capital is increasingly being redirected toward Asia Pacific as investors reposition portfolios for the next phase of the cycle, according to new research from Colliers.

Colliers’ latest Global Capital Flows report (March 2026) highlights a sharp rise in capital raised for deployment into the region, even as transaction activity recovers more gradually. The firm reports that global real estate fundraising rebounded strongly in 2025, climbing 28.9% year-on-year to just over US$222 billion. Capital earmarked specifically for Asia Pacific surged by 109%, significantly outpacing allocations to North America and EMEA and signalling renewed long-term investor conviction.

Despite this, Colliers notes that investment volumes have recovered unevenly across regions. Global transaction activity rose 8.2% year-on-year in 2025, led by North America with a 15.4% increase, followed by EMEA at 8.6%. Asia Pacific recorded more modest growth of 1.7%, with activity easing toward the end of the year after a stronger first half. However, deals involving standing assets in core Asia Pacific markets rose by around 8%, reflecting sustained demand for prime, well-located properties.

According to Theo Novak, Colliers’ Managing Director, Capital Markets and Investment Services, Asia Pacific, the region is increasingly being repositioned within global investment strategies. He noted that while investors remain selective, the scale of capital being raised points to a structural shift in portfolio construction toward Asia Pacific markets.

Colliers also highlights a divergence between capital raising and deployment trends. While EMEA remained the dominant destination for cross-border capital in 2025, several Asia Pacific markets are gaining traction. Japan and Australia, in particular, increased their share of global cross-border investment, reinforcing their roles as key gateway markets.

On the capital supply side, the United States continues to be the largest source of global real estate capital, supported by fundraising for sectors such as data centres. Within Asia Pacific, Japan and Hong Kong are emerging as major outbound capital sources, reflecting deeper domestic liquidity and growing regional investment activity.

Sector preferences are also evolving. Colliers notes that while multifamily assets remain the largest sector globally, industrial and office assets are gaining ground. In Asia Pacific, office has led investment activity over the past two years, driven by demand for high-quality space, while retail investment has strengthened alongside the recovery in tourism and consumer spending.

Looking ahead, Colliers expects the significant volume of capital raised for Asia Pacific to translate into stronger investment momentum through 2026, supported by comparatively resilient economic growth across the region. Novak added that investor focus is increasingly centred on assets and markets capable of delivering long-term performance amid changing conditions.