Asia Pacific real estate investment reached $201 billion in 2025, up 13.7 percent, hitting Knight Frank's 10 percent to 15 percent forecast range, as stabilizing rates drew capital back to quality assets. In the firm's Q4 2025 Capital Markets Insights, investment for the quarter totaled $56 billion, down 10 percent quarter-on-quarter and 7.4 percent year-on-year, as investors were more selective after a strong first nine months.
Retail was one of the best-performing asset class in 2025 by percentage growth. Fourth quarter volumes rose 109.5 percent quarter-on-quarter and nearly doubled year-on-year, reflecting renewed investor confidence in well-located, income-generating retail assets. Full-year investment grew 31.2 percent compared with 2024.
Improving occupier markets and steady consumer demand across the region drew capital back to well-located ret
