APAC Real Estate Investment Trends 2025

APAC Real Estate Investment Trends 2025

Mumbai and Delhi Shine in APAC's Top 10 Real Estate Destinations

The Asia-Pacific (APAC) real estate market is gearing up for a significant surge in 2025, with a notable rise in cross-border investments. Mumbai and New Delhi have proudly secured spots among the top 10 most preferred cities for international real estate investors, according to CBRE’s 2025 Asia-Pacific Investor Intentions Survey.

India’s Promising Real Estate Market

Mumbai, ranked 5th, is a rising star in APAC, following Tokyo, Sydney, Singapore, and Ho Chi Minh City. New Delhi, tied at 8th with Seoul, Osaka, and Hanoi, also reflects India’s growing prominence in global real estate.

The survey underlined an increasing net buying intention across the APAC market, with over 50% of respondents planning to expand their investments. In India, this intention reached 3%, driven largely by developers, real estate funds, and institutional investors.

Investment Surge in India

The Indian real estate market achieved a record equity investment of USD 11.4 billion in 2024, marking a 54% year-on-year increase. Singapore, the United States, and Canada emerged as key contributors, with Singapore leading at 36% of total foreign equity investments.

Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, emphasized, “Investment in India’s real estate market reached record highs in 2024, underpinned by domestic players and a resurgence of foreign capital across diverse asset classes.”

Strategic Investment Opportunities

Mumbai and New Delhi are gaining traction among investors pursuing value-add and opportunistic strategies. Core office properties in tier-1 cities and residential and data centre developments are particularly attractive.

Additionally, Environmental, Social, and Governance (ESG) initiatives have become a critical focus for 56% of investors, who are prioritizing green building acquisitions and retrofitting existing assets.

The APAC Market Outlook

Tokyo retains its top spot as APAC’s most preferred destination for cross-border investments for the sixth consecutive year, followed by Sydney and Singapore. Sydney appeals with its higher returns, while Singapore offers a stable and reliable market.

Net buying intentions in the APAC region soared from 5% in 2024 to 13% in 2025, propelled by asset repricing and falling debt costs. Greg Hyland, Head of Capital Markets, APAC at CBRE, remarked, “While significant rate cuts are unlikely due to inflation, we anticipate investment activity to gain momentum in 2025.”

Future Potential

Industrial properties remain the leading asset class, with office and data centre investments also drawing attention. Southeast Asia, in particular, is becoming a hotspot for data centre projects due to competitive pricing and high demand.

As India emerges as a focal point for real estate investors, cities like Mumbai and New Delhi are set to play a pivotal role. With infrastructure development, ESG initiatives, and cross-border investments, 2025 holds promise for India's real estate sector on a global stage.