• Cross Border Investment Growth: Asia Pacific attracted USD 6.7 billion in Q2 2025 (H1: USD 15.29 billion), marking 86% YoY growth (H1: 118%)
• Flight to Safety: Investors, particularly private wealth up 32% YoY to USD 4.7 billion in Q2, are gravitating toward stable markets and sectors that are highly transparent amid global uncertainty.
• Return-Driven Strategy Shift: levered IRRs are adjusting with several markets seeing premiums above cost of debt; strategies are pivoting from cap rate compression to active management for NOI growth across APAC.
• Evolving Investment Criteria: In mature sectors like retail, investors are looking beyond cap rates to value drivers such as operational efficiency, redevelopment potential, and sustainability credentials.
• Sector Resilience: Markets with strong domestic corporate bases will be less impacted by tariffs than those reliant on global trade. Peak policy uncertainties has subsided but upside risks of weakening economic growth remains.
• Sustainability Focus: Performance-based metrics have replaced symbolic certifications as investment criteria, with energy efficiency and renewable integration now prioritized over traditional green building certifications.
• Energy Transition Opportunity: Battery Energy Storage Systems (BESS) showing the highest growth potential among renewable technologies as costs decline.

Despite global macro uncertainties, Asia Pacific continues to attract significant cross-border investment, with volumes reaching USD6.7 billion in Q2 2025. This represents a substantial 86% year-on-year increase, underscoring the region's enduring appeal to global investors. Japan led with the highest volume of cross-border capital, primarily directed to the living and industrial sectors. In Australia, foreign capital has been actively forming joint ventures with domestic groups to acquire assets, particularly in the student accommodation and industrial sectors. India has seen renewed interest from foreign capital in retail and office assets, while Singapore attracted investment into its industrial and hospitality sectors. In Korea, foreign investment volumes in H1 2025 surged fourfold into the logistics and industrial and living sectors.

While peak policy uncertainty has subsided, investors continue to navigate the complexities of the global trade landscape. With tariff rates still being finalized, investors are factoring in slower-growth scenarios and incorporating longer timelines for due diligence. This environment has sharpened the focus on tenant defensibility and asset resilience. As the market adapts, a potential repricing of assets may emerge as rental growth forecasts are revised

According to a recent JLL survey, sectors driven by domestic demand, such as living, life sciences and healthcare, are perceived as the most insulated from geopolitical risk. In contrast, sectors like industrial and logistics, energy, and retail are seen as more exposed.