Real estate investment in the Asia Pacific region reached US$201 billion in 2025, up 13.7 percent, as stabilising rates drew capital back to quality assets, reports Knight Frank. According to the firm’s Q4 2025 Capital Markets Insights, investment in the fourth quarter totalled US$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 retail assets with stable occupancy and cashflows. Secondary and structurally challenged retail assets, however, conti
