The commercial real estate sector in Asia Pacific enters 2026 with renewed momentum, as investors and tenants focus on restructuring their portfolios for sustainable growth despite slower economic expansion across the region.
CBRE expects sector investments to increase by 5–10% this year, extending the recovery that began in 2025. Transaction volumes reached $157 billion last year, marking a 22% increase compared to 2024, signaling a return of confidence amid ongoing economic challenges.
Net buying intentions are projected to rise to 17% in 2026, up from 13% in 2025 and just 5% in 2024, driven by stronger bets on rental growth and income streams. Ada Choi of CBRE emphasized that the market is shifting toward a stronger focus on asset quality and active management, with growing interest in office properties supported by improved leasing activity and limited supply.
Rising demand for premium office space is being led by the technology sector and professional services firms. New office supply is expected to reach 61.3 million square feet, with the majority concentrated in India and China. Meanwhile, elevated construction costs continue to limit new developments in more mature markets.
In the logistics sector, growth remains supported by e-commerce expansion and automation services. However, development activity is expected to moderate after 2027 due to rising costs. Retail rents, on the other hand, are set to recover and surpass 2025 levels, driven by strong competition for prime locations and landlords’ shift toward experiential retail concepts and strategic repositioning.
The hotel sector is nearing performance stabilization as the tourism recovery reaches completion, although overall revenue growth is expected to slow. In 2026, the market is anticipated to place greater emphasis on sustainability and disciplined investment strategies rather than rapid speculation on short-term economic gains.
