# Asia-Pacific commercial real estate investment trends

> Live situation record from CLSTR: https://clstr.news/situations/asia-pacific-commercial-real-estate-investment-trends
> Updated: 2026-09-07T04:22:50.000Z. Sources: 15. Developments: 4.

Commercial real estate investment in the Asia-Pacific region has shown significant growth throughout 2026. Regional investment volumes rose 22% year-on-year in the first half of the year, driven by a return of capital to traditional sectors. By the second quarter, regional commercial investment reached US$53.5 billion, a 31.1% year-on-year increase. The hotel sector has been a primary driver, with investment rising 55.2% year-on-year to US$5.4 billion due to tourism recovery.

In the office sector, leasing across 11 key Asia-Pacific markets grew by 3% year-on-year in the first half of 2026, totaling 4.6 million square meters. India has emerged as the primary driver, accounting for over 70% of the region's total office leasing. Meanwhile, new office supply saw a 37% year-on-year contraction, falling to 3 million square meters, with India and Mainland China representing more than 80% of the regional supply.

In Hong Kong, commercial property investment more than doubled to US$3.1 billion in the second quarter. While the retail sector faces a downturn, the office market shows divergent trends: vacancy rates fell to 16.1% in the first half of the year, with the central business district (CBD) seeing vacancy drop to 10.2% from 14.5% a year earlier. 

The hospitality sector in Hong Kong reached US$5.91 billion in investment by the end of July. A notable trend involves converting midscale and full-service hotels into student accommodation, exemplified by Centaline Investments acquiring the Regal Oriental Hotel for US$1.518 billion and JD.com acquiring Silka Seaview and 218 Apartment Wan Chai for student living purposes.

## Claims

- India accounted for over 70% of total office leasing across 11 key Asia-Pacific markets in the first half of 2026. (corroborated by 2 sources)
- Total office leasing in the Asia-Pacific region reached 4.6 million square meters in H1 2026, a 3% year-on-year increase. (corroborated by 2 sources)
- New office supply in the region declined by 37% year-on-year to 3 million square meters during H1 2026. (corroborated by 2 sources)
- India and Mainland China together accounted for more than 80% of new office supply completions in the region. (corroborated by 2 sources)
- Asia-Pacific commercial real estate investment reached US$53.5 billion in the second quarter of 2026, a 31.1% year-on-year increase. (single source)
- Hotel investment in the Asia-Pacific region rose 55.2% year-on-year to US$5.4 billion in Q2 2026. (single source)

## Timeline

### 2026-09-07: Hong Kong commercial real estate shows CBD office growth and hospitality investment

Hong Kong's CBD office vacancy fell to 10.2% in H1, while the hospitality sector saw $5.91 billion in investment, driven largely by hotel-to-student accommodation conversions.

2 sources. https://clstr.news/cluster/hong-kong-commercial-real-estate-shows-cbd-office-growth-and-hospitality-investment

### 2026-08-24: Asia-Pacific real estate investment rises amid hotel boom and India office demand

Asia-Pacific commercial real estate saw a 31.1% investment surge in Q2 2026, led by hotels. India dominated the office sector, accounting for over 70% of regional leasing in the first half of the year.

7 sources. https://clstr.news/cluster/asia-pacific-real-estate-investment-rises-amid-hotel-boom-and-india-office-demand

### 2026-08-13: Asia Pacific commercial real estate investment rises 22% in H1 2026

Asia Pacific commercial real estate investment volumes grew 22% in H1 2026, led by a 51% surge in retail. India remains a key destination due to strong economic fundamentals and infrastructure expansion.

2 sources. https://clstr.news/cluster/asia-pacific-commercial-real-estate-investment-rises-22-in-h1-2026

### 2026-08-10: Hong Kong commercial property investment grows amid retail market shifts

Hong Kong’s commercial property investment grew 129% year-on-year to US$3.1 billion in Q2, leading Asia-Pacific growth despite a weak retail market where McDonald’s is successfully offloading assets.

4 sources. https://clstr.news/cluster/hong-kong-commercial-property-investment-grows-amid-retail-market-shifts

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Cite as: Asia-Pacific commercial real estate investment trends. CLSTR, https://clstr.news/situations/asia-pacific-commercial-real-estate-investment-trends