APREA Market Flash: 2026 Market Outlook

What major themes do you expect will define the real assets landscape for India in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

India’s real assets landscape in 2026 will be shaped by resilience and continuity. The economy has held firm through global volatility, tariff realignments, and slowing growth across major markets – reinforcing India’s position as the most stable large economy.

Investors are expecting a benign policy environment, a relatively stable rupee, and sustained domestic expansion. This backdrop supports continued institutionalisation and formalisation across office, residential, hospitality, and alternative asset classes.

Increasing manufacturing driven by global supply-chain reconfiguration, and rising consumption will keep India strategically relevant, while data-centre demand accelerates on the back of AI adoption and digital infrastructure needs. Notably, Japanese interest in Indian real estate – in spite of rising rates in Japan – signals long-horizon confidence and a broadening investor base. Taken together, these factors are likely to underpin depth, liquidity, and steady capital flows into real assets through 2026.

Within real estate in India, which sectors look best positioned for 2026 and what fundamentals support that view?

Most major real estate segments in India enter 2026 on strong footing, but commercial offices and data centres appear particularly well-positioned. The office sector continues to benefit from robust occupier demand, driven by global capability centres, tech services, engineering, and diversified multinational activity. Vacancy levels are gradually normalising and high-quality supply is being absorbed at pace. More hearteningly, India’s REIT market is deepening with more players getting listed – offering investors with additional exit options.

Data centres remain a structural growth story as digital adoption, AI workloads, and cloud migration accelerate, supported by policy incentives and strong operator interest. Residential markets should remain healthy as formalisation progresses and developers maintain financial discipline. Hospitality is seeing sustained recovery, and logistics continues to be underpinned by manufacturing and consumption. Overall, 2026 is likely to be a broad-based growth year, with commercial offices and data centres attracting the deepest investor interest.

Aashiesh Agarwaal

Senior Vice President – Investment Advisor, Capital Markets
ANAROCK Capital Advisors

What major themes do you expect will define the real assets landscape in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

 Asia’s real estate landscape in 2026 will be shaped by a K-shaped economy, where uneven growth amplifies the gap between prime, high-quality assets and older, secondary ones. Technology-driven sectors and active capital markets are enabling stronger corporate performance, fueling demand for premium office spaces from increasingly discerning occupiers. This divergence also extends to housing, as homeownership becomes unattainable for many in the major Asian cities, thereby boosting rental housing demand. 

 Meanwhile, uncertainty around protectionist policies—such as tariffs, export restrictions, and visa controls—could accelerate global supply chain realignment and talent dispersion, reinforcing Asia’s role as a talent hub for skilled labor in markets like China, India, and Singapore. 

 Technology remains a key driver, with AI lowering technological barriers and spurring growth in companies dealing with software, robotics, and autonomous systems, particularly in economies facing labor shortages and high costs. These trends will have spillover effects on offices, industrial real estate and business parks in tech hubs, while automation in manufacturing will increase demand for modern logistics facilities offering efficiency gains despite higher rents. 

 Finally, data center demand will persist with the rise of Neocloud and Edge infrastructure, though older facilities risk obsolescence as AI-driven requirements reshape capacity standards.

Within real estate and REITs, which sectors look best positioned for 2026 and what fundamentals support that view?

 Prime office and living. 

 For office, most markets are witnessing limited new supply forecasts on the back of higher construction costs; together with resilient demand, that would help push up rents. The trend of corporations acquiring office assets should continue, driven by demand for headquarters space and also for rental income. In addition, there has been renewed confidence in office REITs due to the lower interest rate environment, widening spreads, and persistent demand for quality assets for employee attraction and retention. 

 For living, positive rental growth and persistent undersupply retains the sector’s attractiveness for 2026, especially in Japan with tailwinds such as shrinking households, the government’s commitment to grow wages, as well as a mobile and aging population. Policy is also supportive with flexible zoning regulations and high-density housing. 

From a geographic standpoint, which markets in APAC appear most compelling for real-asset investment next year, and where do you see the strongest combination of yield, growth, and policy support?

 Japan and Australia. These two markets have strong domestic economies which are relatively shielded from global trade policies. In addition, stronger growth is also expected from new adminstrations implementing expansionary policies. 

 In Australia, most sectors (apart from Office) are characterised by under-supply and low vacancy rates. Even for Australia office, fundamentals are turning with new supply falling, demand staying resilient, and improving spreads. Inflation has also moderated while the labour market remains strong.

 Japan benefits from an improved economic outlook, high liquidity, stable occupier demand and strong investor appetite; more opportunities may come up with many large corporates under pressure to unlock value in their non-core real estate assets after significant long term valuation gains.

Catherine He

Head of Research
Colliers Singapore

Japan stands out as the most compelling APAC real-asset market for the coming year, offering a rare combination of visible income growth, supportive policy, and improving capital discipline.

From a policy standpoint, even as the Bank of Japan edges toward gradual normalization, monetary conditions remain highly accommodative in real terms. Long-term rates are still low by global standards, financing remains available, and cap rates have stayed resilient despite higher JGB yields. This has allowed transaction volumes to remain robust, with Tokyo again ranking as one of the world’s most active real estate investment markets.

Fundamentally, Japan offers clear growth, not just yield. A structurally tight labour market is driving sustained office rent growth, with prime Tokyo vacancies below 3% and rents rising mid-single digits. At the same time, supply is constrained by labour shortages and sharply higher construction costs, delaying new development across offices, logistics, and hotels. In hospitality, new supply remains minimal despite strong demand, supporting outsized cash-flow growth.

Crucially, inflation is now socially and contractually accepted, enabling rent increases across renewals and the introduction of CPI-linked clauses, even in traditionally rigid segments. Listed REITs and developers have responded with stronger capital allocation, record buybacks, asset recycling, and explicit earnings-growth targets, improving total-return visibility.

Overall, Japan uniquely combines defensive yield, cyclical rental upside, and policy stability, making it the most attractive APAC real-asset market heading into next year.

Christian Bernasconi

Co-Founder, Managing Director
B&I Capital

What major themes do you expect will define the real assets landscape in 2026?

The real assets landscape will likely be defined by a normalisation and synchronisation of interest rates, as the sector reaches the “tail end” of a challenging cycle. While Asian rates have historically correlated with the US, we are seeing a shift where they now align more closely with European rates, reflecting a unique downward moderation in the Asia-Pacific (APAC) region. AI and technological transformation will act as the primary catalyst for structural change, influencing how businesses compete and significantly increasing productivity levels. This transformation is directly fuelling a massive, supercharged demand for data centres, which has transitioned from being cloud-driven to AI-centric. However, this growth faces a “once-in-500-years” environment of heightened policy risk and geopolitical “messiness”, forcing investors to price in governance stability and supply chain shifts. Consequently, there is a distinct relocation of capital, with a growing bias toward domestic capital for domestic assets and a stronger allocation of Asian capital specifically toward the APAC region.

Within real estate and REITs, which sectors look best positioned for 2026 and what fundamentals support that view?

The Living sectors including multifamily, co-living, and Build-to-Rent (BTR) is exceptionally well-positioned due to critical shortages in rental housing and worsening affordability across the region. Japan’s multifamily sector remains a cornerstone of stability, now bolstered by unprecedented rental growth. Similarly, co-living is emerging as a top operational performer in markets like Singapore, Korea, and Hong Kong. The data centre sector continues to see the easiest path for raising capital due to overwhelming end-user demand, though it requires a careful balance between regulatory risks and ESG constraints like water and energy usage. High-quality office assets in prime CBDs are expected to thrive. While AI may reduce total headcount, it creates a bifurcation where highly productive companies will pay premium rents for the right assets in the right locations to maximise their human capital. Overall, the strategy is shifting toward becoming income-centric, focusing on assets with high, resilient cash flows that are less correlated to global GDP fluctuations.

From a geographic standpoint, which markets or cities in APAC appear most compelling for real-asset investment next year?

From a geographic perspective, Japan, Australia, and Singapore offer the most compelling combinations of growth and stability. Japan remains attractive for its stable multifamily income and newfound growth potential. Australia is a primary target for BTR due to its severe housing shortage and strong rental growth. Singapore is viewed as a safe haven where everything works, characterised by strong governance and a resilient REIT market that has seen significant recent fund activity. For technology-driven growth, Smart Cities like Tokyo, Singapore, and Hong Kong are leading in infrastructure and AI adoption. While China presents significant policy risks, it remains a global leader in technological innovation and manufacturing, offering “know-how” that benefits the broader Southeast Asian region. Investors are moving away from broad country-level plays toward a “stock picking” approach, carefully identifying micro-locations and assets in these major cities that offer the ability to add value as the market cycle turns.

Christine Li

Head of Research, Asia Pacific
Knight Frank

What major themes do you expect will define the real assets landscape in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

In 2026, we expect the real assets landscape to be shaped by macro stabilisation, supported by easing interest-rate pressure and improving financing conditions.

Our core focus is grocery-anchored retail parks, where we see continued strengthening of the convenience-led retail model. Physical retail is leveraging prime locations and everyday convenience, while modernising its operating model to perform in a digital-first era (e.g., click & collect) and broadening its function beyond pure shopping. We expect continued expansion of services (healthcare, beauty, fitness, food & beverage, parcel delivery and other convenience-led tenants), which helps assets become local community hubs and strengthens footfall resilience.

A key part of this ongoing modernisation is ESG adaptation. We already see this clearly in our portfolio: during 2025, we delivered multiple PV installations across our retail parks and advanced BREEAM certification initiatives. In December, we also opened a large Tesla Supercharger hub at one of our Czech assets, alongside several additional EV charging points across the portfolio.

David Cubr

Group CEO
ZDR Investments

What major themes do you expect will define the real assets landscape in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

Asia Pacific’s real estate market is entering a renewed phase of resilience and opportunity as the region moves firmly into a stabilisation cycle and investor confidence rebounds. Against this backdrop, we expect the following key themes in 2026:

– Increased competition for prime assets, fueled by rate cuts and liquid debt markets, is creating a supportive environment for capital deployment into real assets. Core and core-plus strategies are back in play. 

– Logistics and industrial assets will continue on their growth trajectory, benefitting from supply-chain diversification and strong rental growth. 

– Value-add strategies will increasingly focus on high-growth sectors like data centres, living and self-storage. Re-priced developed markets are also expected to see tactical acquisitions.  

– Green financing and recapitalisation strategies aligned with sustainability goals will continue to gain traction, especially for core assets. 

Within real estate and REITs, which sectors look best positioned for 2026 and what fundamentals support that view?

Logistics & Industrial will continue to lead the recovery, supported by strong rental growth and sustained investor demand. According to Cushman & Wakefield’s Q3 2025 APAC Investment Atlas, 63% of markets in this sector remain underpriced, offering attractive opportunities for investors seeking long-term value and portfolio diversification. 

Significant repricing of office assets during the rate-hiking cycle has also created relative value opportunities. Stabilisation and early growth signals are evident, especially in markets such as Australia, Singapore and Japan. 

Meanwhile, the retail sector is nearing an inflection point, particularly outside of Greater China. Selective yield compression suggests improving fundamentals, which is an encouraging signal for investors, especially in markets poised for structural recovery and growing demand for experiential retail.

The living sector, particularly in Australia, Japan and South Korea, along with alternative assets such as data centres and self-storage, will remain top of mind, driven by demographic shifts and accelerating digital trends. 

While I won’t specifically opine on REIT performance, REIT creation as an exit solution and a means to introduce new forms and sources of capital into real estate is clearly interesting. This notably applies to India and China, and we are already seeing the deepening of Singapore’s REIT market beyond traditional asset classes. In short, expect more (listings) from Data Centre and Living specialists in Singapore.  

From a geographic standpoint, which markets or cities in APAC appear most compelling for real-asset investment next year, and where do you see the strongest combination of yield, growth and policy support?

Cushman & Wakefield’s analysis shows that yields in Australia and Singapore have expanded significantly, creating upside potential for value-driven investors. Japan, which was a prime investment destination in 2025, remains poised for growth due to stable macro conditions and liquidity, with industrial assets continuing to attract interest. High-growth markets such as India and Southeast Asia are drawing cross-border capital, particularly into industrial and data-centre assets. Overall, Asia Pacific’s transition into early growth, pricing dislocations and structural trends, create compelling opportunities for investors to deploy capital strategically across the region.

Gordon Marsden

Head of Capital Markets, APAC
Cushman & Wakefield

What major themes do you expect will define the real assets landscape in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

We expect the interest rate cutting cycle to slow down in 2026; nonetheless, lower rates and positive yield carry should help to boost investment activity. There are a number of tailwinds expected in 2026, with investors in the region upbeat about strong occupier demand and an improving rental outlook, in addition to the ongoing lowering of debt costs and a booming digital economy.

Within real estate and REITs, which sectors look best positioned for 2026 and what fundamentals support that view?

The office, living and hotel sectors look best positioned for 2026, according to the latest CBRE Asia Pacific Research. A decreasing office supply pipeline and tight vacancy should support the office sector, especially in Japan and Korea, and strong tourism trends should boost hotel demand in North Asian markets as well as in Vietnam. Wage growth and inflation should also help boost the multifamily sector in Japan. Industrial & Logistics appetite is still normalising from previous highs, although Singapore, Australia and Korea (dry-logistics) should perform well. In the alternatives space, data centres and student housing are expected to attract investor demand due to strong supply-demand fundamentals.

From a geographic standpoint, which markets or cities in APAC appear most compelling for real-asset investment next year, and where do you see the strongest combination of yield, growth and policy support?

Japan will continue to be highly sought after by investors, supported by robust fundamentals. In the office sector, Australia (particularly Sydney), Singapore and Japan are well positioned for 2026. Logistics in Korea (dry-logistics), Singapore and Australia (with the exception of Melbourne) could be compelling as rents should grow. Australia should also perform well in the retail sector as regional centre rents are also expected to grow.

Greg Hyland

Head of Capital Markets, Asia Pacific
CBRE

What major themes do you expect will define the real assets landscape in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

 The real assets landscape in 2026 will be shaped by both macroeconomic and structural themes. Key macro drivers—rate cuts, unemployment trends, and inflation—remain central. We expect a constructive environment with policy rates easing toward 3.0–3.25% by year-end and inflation stabilizing near 2.9%, supporting market confidence.

Structural themes such as data center demand and energy transition will continue to influence investment strategies, reflecting long-term shifts in technology and sustainability. However, one area showing renewed strength is logistics. With greater clarity on tariffs and trade policy, logistics demand is expected to rebound, driven by third-party logistics (3PL) operators and resilient supply chains. Leasing remains straightforward, often requiring only one or two tenants, and supply can adjust quickly to meet demand.

Markets have largely priced in geopolitical and regulatory risks, reducing uncertainty and improving visibility for investors. Combined with GDP growth and targeted trade negotiations, these factors create a favorable backdrop for real assets.

In short, macro stability and structural tailwinds—particularly in logistics—will define 2026, alongside ongoing trends in energy transition and data infrastructure.

Within real estate and REITs, which sectors look best positioned for 2026 and what fundamentals support that view?  

Real estate and REITs sectors are entering 2026 with selective strength across regions. 

In the U.S., senior housing remains compelling, supported by aging demographics, rising occupancy, and limited new supply. Hotels are positioned for better RevPAR growth due to the lower base next year. Sunbelt apartments benefit from strong migration trends, job creation, and affordability advantages, while logistics assets maintain momentum on the back of e-commerce expansion and supply chain optimization. 

In Asia-Pacific, Australia’s retail sector shows resilience in prime locations, aided by stabilizing consumer sentiment. Japan’s logistics market remains robust, underpinned by tight land availability and strong tenant demand, while multifamily assets offer stable cash flows and low volatility amid urbanization and rental preference. Singapore’s labor accommodation stands out due to structural undersupply and booming construction activity, creating significant rental growth potential. 

Across these sectors, fundamentals such as demographic shifts, macro trends like migration and e-commerce, and supply-demand imbalances underpin performance. Investors should focus on assets with pricing power and defensive characteristics, while monitoring risks from interest rate volatility and regional economic conditions. Overall, logistics, senior housing, and multifamily appear most resilient, with hospitality and niche segments offering cyclical upside.

From a geographic standpoint, which markets in APAC appear most compelling for real-asset investment next year, and where do you see the strongest combination of yield, growth, and policy support?

From a geographic perspective, Japan and Singapore stand out as the most compelling APAC markets for real-asset investment in 2026, offering an attractive mix of yield, growth, and policy support. Both markets benefit from low absolute funding costs, which enhance returns and support capital efficiency. 

In Japan, strong demand fundamentals combined with limited new supply or supply past its peak are driving rental growth and maintaining tight occupancy rates. Corporate strategies are also evolving, with companies actively divesting non-core assets and improving capital management through higher dividends and share buybacks, creating additional value for investors. 

Singapore presents a slightly different dynamic: while increasing dividend payouts and buybacks are less emphasized, cheap funding costs have significantly reduced borrowing expenses, enabling firms to resume inorganic growth and pursue strategic acquisitions. The combination of robust demand-supply dynamics, disciplined capital management, and favorable financing conditions positions these markets as top choices for investors seeking stability and upside potential. 

Both geographies offer defensive characteristics with strong income visibility, while policy frameworks remain supportive of real estate investment, making them ideal for long-term allocation.

Ivy Ng

Chief Investment Officer, APAC
DWS

What major themes do you expect will define the real assets landscape in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

In 2026, interest rate is to be the largest topic for the real assets investment. Most recently, The Bank of Japan raised its policy rate for 25 bps to 0.75%. Along with this, the long-term interest rate saw above 2%, which was the first time in almost past 30 years. This suggests that a marginal NOI investment yield is likely to be seen, for justifying investments to real assets.

Most recently, however, most of investors on the ground have been buying real assets with seeing “stabilised” yield, rather than “in-place NOI based” rate. This underlies recent robust rental upsides across sectors especially in office and multifamily. Even though investors are obliged to invest at very low yield, the targeted assets are able to provide certain amounts of NOI increase backed by strong rental upsides. 

While real asset investment yields may see marginal decompressions along with rising interest rates. Having said that, actual price of real asset transactions might see further increases – due to lack of quality investment opportunities for an additional reason.

Within real estate and REITs, which sectors look best positioned for 2026 and what fundamentals support that view?

Across sectors might be in a good shape but office is to be a brightest hope for 2026. Grade A office rent in Tokyo saw double-digit growth in 2025, which has been contributed by robust office floor demands across the business. Most of the occupiers are now considering to expand its office area not only because strong business performance, but to provide comfortable workplace.

In addition, limited number of new supply except some large schemes would make competitive market landscape especially in Grade A in Tokyo. This is largely attributed to extremely expensive construction costs predominantly increasing of labour wages. It is believed that the situation is to be continuing for the time being, until 2029 at least.

From a geographic standpoint, which markets or cities appear most compelling for real-asset investment next year, and where do you see the strongest combination of yield, growth and policy support?

It is believed that Tokyo would be the most prominent investment destination. In 2025, almost 80% of total investment activities in Japan saw in the Tokyo metro region. Give the market is able to offer considerable number of investment opportunities, investors are eyeing on Tokyo market as their prime target. In addition, robust rental upside is expected to be seen in 2026 as well especially in office and multifamily would be an attractive fundamental to investors.

Osaka-Kansai region also would be a decent investment market. Along with Tokyo, Osaka office demands have been increasing quite rapidly. Strong rental upswing has been identified, which might be very attractive to all investors.

Koji Naito

Research Director, Capital Markets
Jones Lang LaSalle K.K.

APAC real assets in 2026: resilience and repositioning

2026 is projected to be an important year for real assets in APAC.  Expected rate cuts will ease financing conditions, while structural inflation linked to energy transition costs and supply-chain shifts continue to guide investor strategy.  Despite these pressures sentiment has improved: APAC commercial real estate investment volumes rose approximately 15% year-on-year through 2025, led by stronger activity in Japan, South Korea and Australia, providing momentum into 2026.

With development pipelines still limited, recovering occupier demand is supporting rental growth and returns across key sectors.  Liquidity, however, remains below pre-Covid levels, and many investors maintain a prudent “survive until 2026” stance. Across the region, the energy transition has moved firmly into execution.  

Grid constraints in Singapore and rising data centre power demand in India and Southeast Asia are creating clear opportunities in digital infrastructure and clean-energy solutions.  The region now hosts more than 850 operational data centres, with several hundreds more in development, underscoring the scale of long-term digital infrastructure demand.

With transmission upgrades, storage capacity and renewable PPAs becoming core to asset strategy, supply-chain realignment continues to drive logistics demand in Vietnam and Malaysia.  

Investors are moving toward integrated real-asset strategies, blending real estate, infrastructure, transition-linked assets and private credit. This enables broader access to opportunities in needs-based living, logistics, data centres, credit markets, and recovering hospitality, retail and office segments.

The message for APAC investors is clear: prioritise essentiality, not just exposure, and work with advisers who bring integrated expertise and deep regional insight.

Neil Synnott

Regional Chief Commercial Officer, APAC
IQ-EQ

What major themes do you expect will define the real assets landscape in 2026, such as rate cuts, structural inflation, energy transition, data-centre demand, or global supply-chain realignment?

Central banks in Asia are pivoting hawkish – the 2026 landscape will continue to be steered by the macroeconomic impacts of shifting monetary policy as inflation proves stickier than anticipated. Central banks are adopting increasingly cautious stances in the latter stages of 2025 – South Korea has likely competed its reduction cycle, while Australia faces potential rate hikes in 2026 as inflation ticks higher.

Trade concerns, while persistent, appear to be stabilising following recent diplomatic developments. Ongoing trade tensions are accelerating structural supply chain diversification, creating new real estate demand. Notably, cross-border capital flows into APAC have increased since trade wars began, demonstrating investor commitment to the region’s long-term prospects.

Data center demand remains the standout growth driver as the AI revolution accelerates. Tech giants are committing billions across the region — fueling huge infrastructure requirements. The overall picture suggests a moderately more stable geopolitical environment, though investors must navigate the reality of slower monetary easing.

Within real estate and REITs, which sectors look best positioned for 2026 and what fundamentals support that view?

Supply constraints in mainly office stock across the region are emerging as a strong fundamental driver. New construction is declining region-wide as rising construction costs create market imbalances, setting up a favorable supply-demand dynamic for investors.

The living sector, whilst relatively young in most APAC markets, presents opportunity in its various forms – multifamily, purpose-built student accommodation (PBSA), purpose-built worker accommodation (PBWA), senior housing, and co-living. These numerous asset address chronic undersupply across various demographic segments.

Data centers remain at the forefront as AI infrastructure demands continue driving unprecedented capital commitments from global tech giants throughout the region. Platform strategies are also gaining traction, with investors increasingly pursuing joint ventures or M&A opportunities with Real Estate Operating Companies (REOCs) to access management-heavy sectors like senior housing, co-living, and self-storage. Rising property prices and shrinking living spaces are driving consumer demand for storage solutions. Consolidation is steadily advancing as institutional investors show renewed confidence for its defensive return potential. 

From a geographic standpoint, which markets or cities in APAC appear most compelling for real-asset investment next year, and where do you see the strongest combination of yield, growth and policy support?

Capital is further gravitating towards established safe-haven markets across APAC, with Japan, and Australia maintaining their appeal. These markets offer the stability, transparency, and liquidity amidst the uncertainty across the global economy. Singapore’s substantial drop in borrowing costs has improved the relative attractiveness of office investments.

In emerging markets, India presents an increasingly compelling growth story that’s beginning to attract more capital allocation. The country’s expanding middle class is driving structural demand across multiple real estate sectors. Notably, foreign capital entry is accelerating as market accessibility improves, while exit opportunities are becoming more viable through developing domestic capital and increasing institutional participation.

Hong Kong is beginning to see green shoots where price adjustments have reached a level that is attractive for entry.

Pamela Ambler

Head of Investor Intelligence & Strategy, Asia Pacific
JLL