2025

Knight Frank reported Asia-Pacific property markets achieved a quarterly investment volume record of $63.8 billion in Q3 2025, marking a 57% increase over the previous year. Commercial assets, including offices, retail, hospitality, and coworking spaces, accounted for nearly 80% of total investments. Investors are shifting to income-growth and active asset management strategies, favoring defensive sectors. Year-to-date activity reached 80% of 2024’s annual total, with expectations of crossing $195 billion in total annual investment, buoyed by urbanization and digital economy growth.

Commercial real estate investments in Asia-Pacific rose 23% year-on-year to a record $131 billion in 2024, signaling a robust recovery driven by industrial, office, and data center demand. However, the market faces structural shifts as investors favor operationally intensive assets. Data centers displaced logistics as preferred sectors due to digital infrastructure needs. Tenants increasingly demand integrated services and sustainability certifications. Analysts note declining passive investment interest, with fundraising for Asia-focused real estate funds down 53% over two years, highlighting a shift toward active asset management.

Global real estate investment firm Madison International Realty disclosed plans to start deploying capital into Asia’s secondary real estate markets in 2026, targeting untapped value opportunities. Founder Ron Dickerman characterized the current environment as “very intriguing” amid macroeconomic shifts. The firm aims to invest in multifamily, office, and industrial assets within mid-tier cities showing strong population and economic growth yet less exposure to global capital. The secondary market strategy reflects a maturing Asian real estate landscape where investors seek diversified risk-adjusted returns beyond major metropolitan hubs.