The Asia Pacific real estate landscape is experiencing a remarkable transformation, with investments surging by 12% year-over-year, totaling an impressive $155.9 billion in 2024. This significant growth, as reported by Colliers, highlights the enduring strength of the region’s top nine markets, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

Strong Investment Trends in Asia Pacific

According to the latest “Asia Pacific Investment Insights H2 2024” report from Colliers, the second half of 2024 was particularly fruitful, with South Korea, Japan, and Mainland China contributing a substantial 59% to the total real estate investments of $83.2 billion. Notably, India, South Korea, Taiwan, and Australia recorded remarkable investment growth, with each country seeing increases exceeding 30% year-over-year.

Key Sectors Driving Growth

In the investment landscape, the office and industrial & logistics sectors dominated, collectively accounting for around 60% of total investments in the region. The retail and hospitality sectors also bounced back, with retail investments climbing 31% year-over-year to reach $15 billion in H2 2024. Australia and South Korea each attracted over $3 billion in retail investments, showcasing renewed confidence from investors in these asset classes.

India’s Rising Investment Momentum

India has emerged as a standout performer in the Asia Pacific region, witnessing a staggering 88% increase in investments to $3 billion in H2 2024. The office sector led the charge with a 47% share of total investments, while industrial and logistics followed closely at 27%. Mumbai was the focal point, drawing nearly half of the total investments, largely driven by substantial office asset acquisitions.

Badal Yagnik, CEO of Colliers India, commented on the positive trends, stating, “Institutional investments in Indian real estate have soared, with a 22% rise in capital inflows, totaling $6.5 billion in 2024. This upward trajectory is expected to continue into 2025, supported by promising economic growth and positive investor sentiment.”

Future Prospects for Real Estate Investments

Yagnik also pointed out that an ongoing easing of monetary policy, including potential reductions in the repo rate, could further boost liquidity and stimulate real estate transactions throughout 2025.

Vimal Nadar, Senior Director and Head of Research at Colliers India, emphasized India’s attractiveness as a real estate investment hub, noting, “The steady rise in investment volumes reinforces India’s status as a prime destination for both domestic and international investors. In H2 2024, foreign investments constituted 57% of total inflows, with domestic investments also seeing an 8% year-over-year increase, totaling $1.3 billion.”

Colliers anticipates sustained investment inflows from countries beyond the USA, Canada, and the EU, predicting that these will play a crucial role in shaping the future of Indian real estate. Nadar added, “While global investors diversify their portfolios, domestic investors are increasingly eyeing higher-yield segments like office and industrial properties.”

Chris Pilgrim, Managing Director of Global Capital Markets at Colliers for Asia Pacific, remarked on the resilience of the region’s real estate market, noting that institutional investments have shown robust growth, paving the way for a strong year in 2025.

Conclusion

Overall, the outlook for real estate investments in the Asia Pacific region remains optimistic as we head into 2025. With easing inflation, promising economic growth, and declining borrowing costs across major markets, investors can anticipate a vibrant landscape ahead.