Asia Pacific Real Estate Investors Plan Increased Acquisitions in 2026, CBRE Survey Finds

Asia Pacific commercial real estate investors are preparing to increase capital deployment in 2026, with CBRE’s latest survey indicating a shift in sector preferences and highlighting both growth opportunities and ongoing challenges, including construction costs and interest rate risks.

Investor Intentions and Market Outlook

CBRE’s 2026 Asia Pacific Investor Intentions Survey shows that 57% of investors plan to increase their acquisitions in the coming year. The survey, which covers all commercial real estate asset types, reports that net buying intentions have risen to 17% for 2026, compared to 13% in 2025 and 5% in 2024. This increase suggests a broad-based recovery in investor sentiment across the region.

CBRE’s Head of Capital Markets, Pacific, Flint Davidson, noted that well-capitalised Real Estate Investment Trusts (REITs) are expected to acquire assets with greater confidence in both pricing and demand trends. Davidson also highlighted that while Sydney remains a key market for cross-border investment, interest is likely to expand to other Australian cities in 2026.

Shifts in Preferred Property Sectors

For the first time in six years, office assets have become the most preferred investment sector, overtaking industrial and logistics properties. This trend is especially pronounced in Australia, Japan, and Singapore, where high occupancy rates, limited new supply, and expectations of rental growth are strengthening investor confidence in well-leased, high-quality office assets.

Sameer Chopra, CBRE’s Head of Research, Pacific, identified rent growth and a sustained decrease in supply as key factors attracting investors. The survey also notes that data centres, hotels, and Grade A office buildings are the sectors most likely to experience price growth. However, construction cost inflation remains a significant concern, particularly for those investing in Australia. Other challenges include a more restrictive monetary policy from the Reserve Bank of Australia (RBA) and higher bond yields.

Top Markets for Cross-Border Investment

Tokyo continues to be the leading market for cross-border real estate investment in Asia Pacific, maintaining its top position for the seventh consecutive year. The city’s appeal is attributed to favourable debt costs and stable, growing cash flows. Sydney ranks second, followed by Singapore and Seoul, which are tied for third place. These cities benefit from sustained investor demand, easing debt costs, and opportunities in core office assets and diversified property types. Hong Kong SAR has re-entered the top five, driven by renewed demand from mainland China and increased activity in the living and hotel sectors, including asset repurposing.

Investment Strategies and Property Types

The survey indicates that 25% of investors plan to target the office sector in 2026, attracted by pricing adjustments and a recovery in leasing demand. Industrial and logistics remain important, with 21% of investors prioritising these assets, supported by declining completions from 2027 and ongoing e-commerce growth. The living sector, particularly build-to-rent opportunities, continues to attract interest, while data centres now rank fourth after being reclassified from the traditional sector category.

Core plus and value-add strategies are the most popular among investors, with over 63% selecting these approaches. This reflects increased confidence in rental growth-driven returns. Opportunistic strategies have declined in popularity due to fewer distressed opportunities, weaker internal rate of return prospects, and elevated construction and labour costs. Asia Pacific REITs are expected to be active buyers in 2026, with net buying intentions at +30%. In contrast, private investors may become modest net sellers, with a net intention of -3%, as they recycle assets acquired during earlier market dislocations.

Key Challenges Facing Investors

Rising labour and construction costs have emerged as the primary challenge for investors in the region, overtaking previous concerns for the first time since the survey began. Geopolitical tensions, particularly in mainland China and India, remain a concern. Interest rate risks have also resurfaced in Japan and Australia following recent central bank policy signals.

The survey results indicate that while Asia Pacific real estate investors are optimistic about growth opportunities in 2026, they remain cautious about macroeconomic and sector-specific risks.

Readthe complete CBRE’s 2026 Asia Pacific Investor Intentions Survey.