CBRE’s 2026 Asia Pacific Real Estate Outlook: Investment Activity Set to Increase with Office Sector Regaining Favour

Asia Pacific – February 23, 2026 – The Asia Pacific commercial real estate market is poised for continued momentum in 2026, with investment and leasing activity expected to strengthen even as broader regional economic growth moderates, according to CBRE’s 2026 Asia Pacific Real Estate Market Outlook.

CBRE foresees several positive developments in 2026, including a 5-10% year-on-year increase in commercial real estate investment volume in Asia Pacific and a notable return of investor interest to the office sector, which ranked as investors’ most preferred asset class for the first time since 2020. This is supported by improving leasing demand as companies seek high-quality buildings in core city locations. As yield compression will be limited, this is shifting investor focus toward rental growth as the primary driver of returns.

“As we move into a cycle where income growth is at the centre of real estate decision-making, the ability for occupiers and investors to recalibrate and innovate will be critical,” said Ada Choi, Head of Research, Asia Pacific for CBRE. “Occupiers are responding to softer economic growth by sharpening their space requirements and prioritising high-quality buildings in core locations, while investors are focusing on income resilience and portfolio optimisation. It will also be important to capture emerging opportunities in sectors such as data centres and living.”

CBRE’s report details the company’s 2026 outlook for the economy and multiple real estate sectors:

Capital Markets

• Asia Pacific commercial real estate investment activity rebounded strongly in 2025, with full year volumes reaching US$157 billion, an increase of 22% year over year.
• Asia Pacific investment volumes are forecast to rise by 5–10% in 2026, as net buying intentions —the difference between investors looking to acquire rather than sell assets—improve to 17% (up from 13% in 2025 and 5% in 2024).
• Tokyo remains the leading destination for cross border capital, followed by Sydney, with Singapore and Seoul tied, and Hong Kong SAR returning to the top five.
• Offices rank as investors’ top preferred sector for the first time in six years, reflecting improving leasing fundamentals and structurally constrained supply in core locations.
• Data centres continue to gain prominence, ranking as the fourth most preferred sector among regional investors.

Office/Occupier

• Leasing demand is expected to strengthen in 2026 as occupiers prioritise core locations and high quality buildings, supported by stricter office attendance mandates and a flight to quality.
• Expansionary demand is led by technology firms, particularly software companies benefiting from AI adoption, alongside wealth management and professional services.
• 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.
• Supply in developed markets is expected to remain constrained, as high construction costs limit new development, supporting rental growth in cities such as Tokyo, Singapore and Australian CBDs.

Logistics

• Logistics rents are expected to continue rising across most markets, though growth will moderate as occupiers adopt more selective expansion strategies.
• 3PLs and e commerce operators remain the primary demand drivers, with a strong preference for large-scale, automation ready facilities.
• New completions are expected to decline sharply from 2027, as elevated construction and land costs curb development pipelines.

Retail

• Retail leasing activity is projected to exceed 2025 levels, supported by improving sales and clearer trade policies.
• With tight vacancy in prime locations and limited future supply, this will intensify retailers to compete for space.
• The retail landscape continues to evolve toward experiential formats, with greater emphasis on dining, wellness, services and other experiential offerings, as landlords refresh tenant mixes.

Hotels

• With tourism arrivals nearing pre pandemic levels, growth in 2026 is expected to normalise compared with recent years.
• Event driven tourism will remain a source of demand across major cities, although RevPAR growth is expected to moderate as average daily rates (ADRs) continue to normalise.

To read the full report, click here.