Theo Novak, Colliers’ Managing Director of Capital Markets & Investment Services, has seen a decisive shift as capital re‑anchors in APAC and momentum accelerates across key markets.
If there is one thing I have learned after years of watching capital move across global real estate markets, it is that momentum really does matter.
Right now, Asia Pacific has more of it than anywhere else.
Coming out of 2025, you could feel it building. Transaction activity rebounded across many of our major markets, and that rebound was not simply a short‑term lift. It signalled a deeper shift taking place across the global investment landscape. Investors are not cautiously dipping back into APAC. They are re‑anchoring here with a level of conviction I have not seen in more than a decade.
A structural reweighting, years in the making
For years, global portfolios were weighted toward the United States and Europe. That balance is now changing. Stabilising valuations, narrowing bid and ask spreads, and improving transparency across several markets are reshaping how global investors allocate capital. APAC is attracting renewed attention because it aligns with long‑term demographic strength, economic resilience and sustainable growth themes.
We have entered 2026 with clarity, confidence and a stronger appetite for both deployment and repositioning. The question I hear most often from global investors is no longer why they should be in APAC. It is how quickly they can scale, and where.
Gateway markets leading the charge
Managing downside risk remains a key priority for many investors. As a result, I see capital being directed toward mature, highly liquid markets such as Tokyo, Singapore, Sydney and Seoul. These are markets where investors feel comfortable allocating at scale, and that confidence is translating directly into transaction momentum.
At the same time, markets such as India and parts of Southeast Asia are becoming strategic targets for expansion. Investors are looking for scalability and cities that are evolving quickly enough to support long‑term urbanisation trends.
Private capital is rewriting the playbook
With the appeal of downside protection strong, interest in private credit transactions should remain robust, particularly among family offices and high net worth investors.
These private capital sources have also been actively bidding on opportunities ranging from premium office buildings, high-street retail, and trophy hotels to more hands-on value-add strategies. One notable example is the conversion of hotels into student accommodation in Hong Kong, a response to low asset prices and persistent undersupply in the student accommodation market.
Office and retail return to the forefront
After several years of uncertainty, both office and retail are back in investor conversations. Work and shopping patterns are stabilising, values have reset, and investors now have the clarity needed to engage with confidence.
What is particularly interesting is the shift away from new development. Rising construction costs and labour constraints are prompting investors to focus on repositioning and adaptive reuse. These strategies improve asset performance, support sustainability objectives and reduce time to market.
‘Beds and sheds’ continue to dominate
The momentum behind the ‘beds and sheds’ thematic is holding firm. Operators backed by institutional capital are scaling at pace, and we expect to see further consolidation as platforms seek to scale up, grow their assets under management and increase market share through M&A activity.
Living sectors, including multifamily and student housing, continue to benefit from population mobility and persistent supply constraints. Meanwhile, industrial and logistics remain a pillar of structural demand, supported by e‑commerce growth and infrastructure investment.
These sectors offer long‑term defensibility rather than short‑term cyclical opportunity, which is why they continue to attract substantial capital.
Big-ticket transactions are returning
One of the clearest indicators of renewed confidence is the return of large transactions, especially those above US$500million. Investors are seeking efficient, high conviction ways to deploy capital, and competition for these opportunities is rising.
Among these, data centres are expected to dominate the highest-value trades this year, benefiting from structural demand drivers and growing institutional interest.
Why this moment matters
The rebound in transaction activity across most Asia Pacific markets last year has created strong momentum that is set to carry through 2026. Rising investor confidence and conviction in positive market fundamentals point to a very active year for both capital deployment and legacy asset dispositions.
The convergence we are seeing today, of increasing liquidity, intensifying competition and maturing emerging sectors, marks an important point in the evolution of APAC’s investment landscape. This region is not simply participating in the next global cycle. It is leading it.
For investors with ambition and agility, 2026 presents a rare moment where macroeconomic trends, structural fundamentals and demographic drivers all align. The opportunities ahead are not only compelling but highly scalable. I have never been more excited about the future of investment in our region.
