Asia Pacific Real Estate Rises as India Leads AI and Logistics Investment Surge

Asia Pacific real estate investments grew by 19.2% in Q1 2026, with India emerging as a key market. The growth is driven by demand for industrial, logistics, and AI-related infrastructure. Despite geopolitical tensions, resilient investment activity was noted in core assets like prime offices and digital infrastructure.

Real estate investments in the Asia Pacific region surged by 19.2% in the first quarter of 2026, according to a report from Savills, a prominent real estate consultancy. India has notably emerged as a leading market, benefiting from heightened demand for industrial, logistics, data centers, and AI-driven infrastructure projects.

Prime office segments spearheaded the recovery with a 25.7% increase year-on-year, bolstered by reduced vacancies and rising rents in major cities such as Tokyo and Singapore. The industrial and logistics sectors continued to draw substantial investor interest due to escalating AI-related manufacturing, semiconductor exports, and infrastructure expansions in key markets like India, Japan, Taiwan, and Malaysia.

Neil Brookes, Executive Managing Director of Asia Pacific Capital Markets at Savills, highlighted that despite geopolitical risks, the region's capital deployment remains robust. He noted the enduring demand for industrial and logistics assets alongside the resurgence of prime office investments, indicating a selective yet constructive investment climate.