Asia’s Property Sector in 2025: Diverging Trajectories and Strategic Opportunities

The Asia-Pacific real estate market in 2025 presents a dynamic blend of growth, resilience, and adaptation. Developed markets such as Japan, Australia, and Singapore spearhead investment activities, supported by stable policies and high-quality assets. Meanwhile, Southeast Asia and India leverage demographic changes and industrial transformations to drive their markets forward.

Key Points

• Asia’s property sector is experiencing steady growth in 2025, with GDP growth forecasted at 4.1%, driven by markets like India, Australia, and Japan.
• It seems likely that investment volumes will rise by 5-10% year-over-year, with a focus on offices in Singapore, Korea, and Australia, and logistics in India.
• The evidence leans toward a “flight to quality” in offices and logistics, with strong demand for modern, ESG-compliant spaces, while retail and Greater China face challenges.
• An unexpected detail is the full recovery of international hotel tourism, with 700 million arrivals expected, 2.6% above 2019 levels, led by Japan, Korea, and Thailand.

China’s tentative recovery in first-tier cities contrasts with structural oversupply in secondary markets, and luxury residential demand evolves to meet post-pandemic wellness and exclusivity preferences. Commercial real estate faces bifurcation, with logistics and niche sectors like data centers outperforming traditional office markets in many regions. Below, we analyze these dynamics across five key dimensions shaping the continent’s property landscape.