Asia-Pacific commercial real estate investment volumes reached US$39.5 billion in the third quarter of 2025, a 2% increase from the same period a year ago and a substantial 26% uptick from the previous three months, according to new data from global real estate consulting firm JLL.

Year-to-date volumes rose 11% year-on-year to US$106.6 billion as markets navigate a fragile recovery amid evolving interest rate dynamics and persistent geopolitical headwinds.

India delivered a standout performance in Q3 2025, recording US$2.6 billion in investment activity – the highest quarterly volumes in the country's history and a remarkable 511% surge YoY ( YTD: US$4.7 billion, up 131% ). Unrelenting strength in office fundamentals propelled acquisition activity from global investors, Indian real estate investment trusts ( Reits ) and domestic funds, with momentum signalling growing confidence in the country’s commercial real estate trajectory as the market matures.

Japan maintained its position as the region's powerhouse, with Q3 2025 volumes of US$10.3 billion representing a 23% YoY increase and bringing year-to-date totals to US$31.6 billion, a 23% increase from the same period in 2024.

Multifamily investments in Japan surged to levels not seen since Q1 2020, with prominent transactions including a 30-building portfolio. While office assets remained in demand from domestic buyers, foreign investors emerged as net sellers.

Remarkable resilience

"Asia-Pacific's commercial real estate investment landscape is demonstrating remarkable resilience despite a complex macro environment, characterized by trade policy volatility and shifting monetary conditions," says Stuart Crow, chief executive officer, Asia-Pacific capital markets, JLL. "India's record-breaking quarter underscores the compelling growth narrative across all sectors, while Japan's sustained momentum is built around the expectation of near-term rental growth, as is the case in many of the large Asian markets.”

Office assets dominated Q3 investment activity, commanding US$17.8 billion in transactions – a 53% YoY surge and bringing year-to-date volumes to US$47.5 billion ( up 36% YoY ).

South Korea recorded six deals exceeding US$250 million, while Japan saw foreign capital executing strategic exits amid favourable market sentiment. Industrial and logistics volumes reached US$7.1 billion. Although declining 38% YoY, the sector posted a 13% quarter-on-quarter improvement as yields compress in major markets.

The living sector sustained its impressive trajectory, with Q3 volumes of US$5.0 billion representing a 304% YoY increase ( YTD: US$11.0 billion, up 137% ). Japan's multifamily market remained the primary driver, with institutional investors and platforms including Weave Living actively expanding portfolios. Meanwhile, Singapore's worker dormitory segment received a boost from Centurion's initial public offering and subsequent acquisitions.

Cross-border investment flows surged to historic levels, with Q3 volumes of US$12.0 billion marking a 60% YoY increase ( YTD: US$27.3 billion, up 88% ). Intra-regional capital demonstrated growing prominence alongside traditional global investors, with Japan and Korea office, Japan multifamily, and Korea industrial attracting substantial foreign capital deployment.

Private wealth investment volumes climbed 35% YoY in Q3 2025 to US$6.0 billion ( YTD: US$15.9b billion, up 14% ). Australia and Japan collectively accounted for nearly half of all private wealth transactions. Australia accounted for 26% of all transaction volumes in Q3 2025, backed by strong domestic demand, while Japan accounted for just over one quarter of volumes ( 20% ). South Korea rounded out the top three accounting for 15% of private wealth investment.

Rising market presence

Australian family offices have notably increased their market presence, now representing 42% of investors based in the country, up from just 10% in 2020.

"The recent rate cut by the Federal Reserve has provided Asian central banks with enhanced flexibility to ease monetary policy without foreign exchange pressures, creating increasingly favourable financing conditions across the region," says Pamela Ambler, head of investor intelligence, Asia-Pacific, JLL.

"We're observing yield compression in multiple markets as investors recalibrate pricing assumptions, while alternative lenders are reshaping the debt landscape to provide additional liquidity. Despite ongoing tariff uncertainties affecting certain sectors, structural opportunities in data centres, multifamily, and life sciences continue to attract long-term institutional capital."