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CBRE's Asia Pacific Real Estate Market Outlook for 2026 has indicated that commercial real estate investment and leasing activity across the region is expected to strengthen, even as overall economic growth shows signs of moderation. Investment volumes are projected to rise by 5-10% year-on-year, supported by improving investor sentiment and stronger net buying intentions. The office sector has re-emerged as the most preferred asset class for the first time since 2020, driven by better leasing fundamentals and limited supply in core locations. Investors are increasingly shifting focus towards rental income growth rather than yield compression. Alongside offices, data centres and living assets are gaining attention, while logistics, retail and hotels are expected to see steady but more measured growth across key Asia Pacific markets.
The Asia Pacific commercial real estate market is expected to maintain positive momentum in 2026, with investment and leasing activity projected to strengthen despite a moderation in regional economic growth, according to the latest outlook released by CBRE earlier this week. Advertisement
CBRE has projected that Asia Pacific commercial real estate investment volumes could increase by 5?10% during 2026, following a strong rebound in the previous year. Full-year investment volumes across the region reached USD 157 billion in 2025, reflecting a year-on-year increase of 22%. Net buying intentions, defined as the difference between investors looking to acquire assets versus those looking to sell, are expected to improve to 17% in 2026, compared with 13% in the previous year and 5% two years earlier.
The office sector has emerged as the most preferred asset class among investors for the first time in six years. CBRE attributed this shift to improving leasing demand and structurally constrained supply in core business districts. With yield compression expected to remain limited, investors are increasingly focusing on rental growth as the primary driver of returns.
Ada Choi, Head of Research for Asia Pacific at CBRE, stated that income growth was becoming central to real estate decision-making. She said occupiers were responding to softer economic conditions by refining their space requirements and prioritising high-quality buildings in core locations, while investors were focusing on income resilience and portfolio optimisation. She also noted that emerging opportunities were developing in sectors such as data centres and living assets.
From a capital markets perspective, Tokyo continued to be the leading destination for cross-border capital flows, followed by Sydney. Singapore and Seoul were tied for the next position, while Hong Kong returned to the top five investment destinations.
Leasing demand in the office segment is expected to strengthen in 2026, supported by stricter office attendance mandates and a continued flight to quality. Expansionary demand is being led by technology firms, particularly software companies benefiting from artificial intelligence adoption, as well as wealth management and professional services firms. Regional Grade A office supply is forecast to peak in 2026 at 61.3 million sq ft, with more than three-quarters concentrated in India and mainland China. In developed markets, supply is expected to remain constrained due to high construction costs, supporting rental growth in cities such as Tokyo, Singapore and Australian central business districts.
In the logistics segment, rents are projected to continue rising across most markets, although growth is expected to moderate as occupiers adopt more selective expansion strategies. Third-party logistics providers and e-commerce operators remain the primary demand drivers, with strong preference for large-scale, automation-ready facilities. New completions are expected to decline sharply from 2027 as elevated land and construction costs restrict development pipelines.
Retail leasing activity is expected to surpass levels seen in the previous year, supported by improving sales performance and clearer trade policies. Tight vacancy in prime locations and limited future supply are likely to intensify competition for quality retail space. The retail sector continues to shift towards experiential formats, with greater emphasis on dining, wellness and service-oriented offerings.
In the hospitality sector, tourism arrivals across Asia Pacific are nearing pre-pandemic levels. Growth in 2026 is expected to normalise, with event-driven tourism continuing to support demand in major cities, while revenue per available room growth is projected to moderate as average daily rates stabilise.
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