Global Real Estate Rebounds in 2025: What's Next for 2026?
Global real estate is demonstrating a significant comeback, with investment activity picking up pace in 2025. According to a Colliers report, investment volumes increased by 8.2% year-on-year, marking a notable recovery from the subdued period experienced in previous years.
While the market is regaining momentum, the recovery is uneven across different regions. Asia-Pacific, including India, stands out as a key driver in the next phase of growth. The report highlights that the majority of transactions for 2025 have been accounted for, reflecting a broader uptick in global deal activity and investor participation. This gradual return of confidence in the real estate investment landscape is a positive sign for the sector.
The outlook for 2026 suggests that APAC economies will lead global growth. “Forecast growth for 2026 also looks strongest in the APAC region, with all major markets bar Japan set to hit 2% or higher,” the report noted. Several economies in the region have already shown signs of improvement compared to the previous year, demonstrating a degree of resilience despite broader global uncertainties.
However, investment growth in the region has been relatively modest compared to other parts of the world. “In APAC, volumes for the region registered a 1.7% year-on-year growth,” the report said. Despite a slowdown towards the end of the year, core markets continued to attract investor interest. Transactions involving standing assets in major APAC markets rose by around 8% in 2025, indicating continued confidence in established locations and stable assets.
“Transactions of standing assets in core APAC markets increased circa 8% in 2025, showcasing investor confidence and resilience in key locations,” the report stated. Globally, real estate fundraising also strengthened during the year, with capital raising rebounding in the second quarter and pushing total fundraising for 2025 to over $222 billion. This marked the third strongest year for fundraising since 2019.
“Global real estate fundraising continued to rebound during Q2 2025, taking the full year total to just over $222 billion,” the report noted. The report observed a shift in capital allocation trends, with increased fundraising directed towards Europe and Asia-Pacific markets, indicating evolving investor preferences across regions.
“2025 saw a marked shift in funds raised for investing in Europe and APAC,” the report said, suggesting that continued interest in these regions could support sustained investment activity going forward. Going further in 2026, the report suggests that improving economic conditions in Asia-Pacific economies, including India, are likely to support real estate investment flows, even as regional growth trends remain uneven.
Overall, the real estate sector is on a positive trajectory, with the Asia-Pacific region poised to play a crucial role in driving future growth. Investors are showing renewed confidence, and the market is expected to continue its upward trend in the coming year.
