Institutional Investments Apac Real Estate 12 Us156 Bil 2024 Colliers

Investments in Asia Pacific real estate rose by 6% year-on-year to US$83.2 billion ($112 billion) in the second half of 2024, according to research by Colliers. This brings the total investments for the entire year to US$155.9 billion, a 12% increase from the previous year. The figures cover the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

The growth in investments is a testament to the resilience of the Asia Pacific real estate market and signals a strong outlook for 2025, says Chris Pilgrim, Colliers’ managing director of global capital markets for Asia Pacific. Pilgrim also notes that domestic investors have been a major driving force in key markets such as South Korea, Taiwan, and New Zealand, where they accounted for over 80% of real estate inflows in the second half of 2024.

The office sector was the top contributor to investment volumes in Asia Pacific, accounting for US$26.5 billion (32%) of the total investment volume in the second half of 2024. For the entire year, office investments reached US$51.4 billion, a 14% increase from the previous year.

The industrial and logistics sector was the second-largest contributor, recording US$22.6 billion in investments in the second half of 2024, or 27% of the total. This brings the total investments in this sector to US$39.4 billion for the whole of 2024, a 29% increase from the previous year.

The retail sector also rebounded significantly, with total investments of US$15 billion in the second half of 2024, driven by major deals in Australia and South Korea. For the entire year, retail investments reached US$26.1 billion, reflecting a 27% increase from the previous year.

Looking ahead, Pilgrim expects domestic capital to continue dominating most markets in 2025. However, he also predicts an increase in offshore investments, driven by improving investor confidence and attractive valuations. While the office and industrial segments are expected to remain strong, Pilgrim believes that retail, hospitality, and alternative asset classes will also gain traction as investors capitalize on recovery momentum and evolving consumer trends. He adds, “With economic growth remaining buoyant and continued policy support, the real estate market in Asia Pacific is well-positioned for sustained investment activity in 2025.”