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Asia Pacific’s commercial real estate market is set for a strong year in 2026, as investment and leasing activity are both expected to pick up, supported by the region's underlying economic resilience and improving investor sentiment.
Investor sentiment strengthens noticeably
Investor sentiment is improving in Asia Pacific, and conditions are expected to support greater activity. Investor confidence, combined with gradually easing financing and reduced future supply in many locations (particularly after 2026 or 2027), should lead to an increase in total commercial real estate investment volume by 5-10% year-on-year, according to CBRE.
Offices returned as the most preferred asset class for the first time since 2020, ahead of Industrial & Logistics. Data centres also feature strongly, with investors looking to build scale in this sector.
Hong Kong SAR has returned to the top five preferred cross-border destinations after a short absence. This resurgence is underpinned by renewed interest from mainland Chinese investors, together with activity in living sectors and hotels, including opportunities for asset repurposing, such as conversions of underused hotels into student accommodation to meet demand from non-local students.
“That combination is fostering a measured return of confidence and a willingness to deploy capital, particularly into high quality assets with visible income durability,” she added.
Office vacancy tightens across mature markets
In the office sector, leasing demand is set to strengthen across mature central business districts, as occupiers place greater emphasis on core locations and buildings that offer superior amenities.
Expansion is anticipated from technology firms, wealth management companies, and professional services providers, which continue to seek quality space amid stricter attendance policies and AI integration.
Source: News - South China Morning Post
