Brick by brick: How global real estate rebuilt itself in 2025; what's the outlook for 2026?

Global real estate is showing signs of a comeback, but the recovery is playing out unevenly across regions. After a subdued period, investment activity picked up in 2025, with volumes rising 8.2% year-on-year, according to a Colliers report. While momentum has returned to the market, attention is now turning to where the strongest growth is likely to come from, and Asia-Pacific, including India, is emerging as a key driver in the next phase of expansion.The report highlighted that a majority of transactions for 2025 have now been accounted for, reflecting a broader uptick in global deal activity and investor participation. The overall improvement points to a gradual return of confidence in the real estate investment landscape.“With the vast majority of 2025 transactions now registered, it is encouraging to see the real estate investment market posted a strong recovery year-on-year, with global volumes rising by 8.2%,” the report said, as cited by ANI.Across regions, the recovery has been uneven, but Asia-Pacific markets, including India, are expected to benefit from relatively stronger growth prospects. In near term, the region's economic momentum is likely to continue supporting investment inflows.The outlook for 2026 suggests that APAC economies will lead growth globally. “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, reflecting a degree of resilience despite broader global uncertainties. “Several countries saw economic growth improve over 2024, particularly in APAC,” the report added.At the same time, investment growth in the region has remained 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, noting that although activity slowed towards the end of the year, core markets continued to attract investor interest.Within the region, 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 said.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 further 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,” it 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.