Newsletter

As inflation eases and interest rates gradually decline, 2026 is shaping up as a more supportive year for real estate capital. Forecasts point to modest but resilient global growth, improving affordability, and a recovery in transaction volumes, particularly in markets where demographics, infrastructure spending, and policy reforms align.1. Interest Rates and Buyer Activity Central banks in several advanced and emerging economies are expected to continue a controlled rate-cutting cycle into 2026, which improves mortgage affordability and refinancing conditions. Lower borrowing costs typically stimulate residential transactions and reduce financing pressures for investors. Strategic regions benefiting: Malaysia, Thailand, Vietnam, UAE and Saudi Arabia, where monetary policy and household demand remain relatively constructive.2. Secondary and High-Growth Cities Capital is rotating from expensive global gatekeepers toward secondary and rising cities with stronger affordability and infrastructure upgrades. Southeast Asia demonstrates this shift with accelerating urbanisation, young populations and improving transport networks. Strong examples: Ho Chi Minh City and Hanoi in Vietnam, Bandung and Surabaya in Indonesia, Penang and Johor in Malaysia, Greater Bangkok in Thailand and tier-two tech corridors in India.4. Supply Constraints and AffordabilityConstruction pipelines remain limited due to financing costs and labour constraints, particularly in rapidly growing cities. When population growth or foreign demand remains strong, constrained supply supports rental growth and long-term capital values.Investment angle: Residential and rental housing in Vietnam, Malaysia, Indonesia and the UAE continue to show healthy absorption rates and favourable replacement economics.5. Alternative Property SectorsInvestors are increasingly directing capital to sectors tied to long-term structural demand such as logistics, data centres and healthcare or education-linked real estate. These assets deliver longer leases and diversified income streams.High-potential plays:Singapore and Johor for data centres due to cloud investment and power availability.Dubai and Riyadh for logistics and industrial linked to e-commerce and trade.Bangkok and Kuala Lumpur for healthcare, student living and senior living opportunities.6. Affordable and Purpose-Built RentalsAffordability pressures in major Southeast Asian and Gulf cities are supportinginvestor interest in build-to-rent, multi-family and long-stay serviced apartments.These sectors provide defensive rental income, extended tenancy duration and strong occupancy resilience.7. Technology and AI in Real EstateAdoption of AI and data platforms is improving underwriting, pricing transparencyand cross-border transactions. Digital tools are widening access to internationalmarkets and enabling investors to compare yields, occupancy and risk in real time.Macro Risks to MonitorThe recovery trajectory remains uneven across regions. China’s ongoing propertyadjustment continues to weigh on sentiment in North Asia. Geopolitical uncertaintiesand public debt pressures may occasionally disrupt capital flows. Strong balance sheetsand income visibility remain key.Download the full report for deeper market insightsDownload

Dubai has transitioned from an emerging property market to a globally relevant destination for real estate capital. For affluent and high-net-worth investors in ASEAN, it now features a diversified international property allocation strategy due to its macro stability, tax-efficient structure, global demand base, and robust fundamentals.Political and economic stability are among Dubai’s foundational strengths. The UAE’s policy of continuity and strong governance, supported by a US-dollar-pegged currency, reduces foreign-exchange risk and attracts international capital seeking reliable returns. Dubai’s legal framework for property ownership especially freehold rights for foreigners further enhances investor confidence. Tax efficiency is another structural benefit. There is no annual property tax, no capital gains tax on property sales, and no inheritance tax on real estate. Coupled with clear regulatory protections such as escrow accounts and title deed transparency, this improves net investor returns compared to many mature markets.Dubai’s market also benefits from diverse global demand with buyers from the Middle East, Europe, Africa, South Asia, and Southeast Asia supporting liquidity and exit flexibility. Demand is underpinned by genuine urban fundamentals: global transport connectivity, population growth, tourism appeal, and sustained rental demand.The market continues to deliver competitive yields and strong transactional growth, as reflected in the latest market data. These indicators underscore a market with growing value, solid transaction momentum, and attractive income potential, affirming Dubai’s appeal as a core component of international real-estate portfolioDownload to see insights from other country marketsDownload

Canada’s real estate market closed 2025 in a more balanced and stable position, supported by earlier interest rate cuts, easing inflation, and gradually improving buyer confidence. Across major cities, conditions varied but remained resilient: the GTA saw steady demand within a well-supplied market, Vancouver experienced elevated inventory with limited price pressure, and Montreal continued to outperform, driven by favourable financing conditions and population growth. Overall, the national market ended the year on solid footing, setting a measured tone for 2026. At the city level, Toronto closed December 2025 with lower year-on-year sales and prices, but rising listings and improving affordability are positioning the market for a potential recovery once economic confidencestrengthens. Vancouver remained firmly buyer-friendly, with high inventory levels and softer sales keeping conditions balanced-to-soft. Quebec continued to show resilience, with stable transaction activity and price growth supported by strong demand for multi-unit and urban housing. Taken together, Canada’s housing market is entering 2026with greater stability, improving affordability trends, and pent-up demand that could support activity as confidence returns.Download to see insights from other country marketsDownload

In November, Hong Kong’s residential market saw a 2.2% decline in transaction volume but a 1.2% rise in total consideration to HKD 51.7 billion. Mass residential capital values continued their 0.6% m-o-m rise, marking the third consecutive month of increases. Developers have been actively launching new projects, reducing unsold inventory. Theexpected supply months for the end of 2025 is forecasted to drop to 51.3 months, from 67.4 months in 2024. The luxury market saw a sale at Deep Water Bay Road 39, fetching HKD 342 million, marking a 2.8% loss from 2015.Retail sales grew by 6.9% y-o-y in October, with electrical goods and food categories showing strong resilience. Inbound visitor arrivals surged by 12.2% y-o-y, with Taiwan seeing the strongest increase. The leasing market remained active, with major deals like HSBC leasing space in Causeway Bay for HKD 4 million per month. Investment activity slowed, with Uni Investment Development Ltd acquiring a property in Kowloon Bay for HKD 131.8 million, yielding 7.3%.Download to see insights from other country marketsDownload

Hanoi's real estate market is facing challenges as rental yields have significantly fallen. While property prices have surged by 30–40% over the past year, rents have only risen by 8–10%, with many areas experiencing a plateau in rental income. This situation is making it increasingly difficult for property owners with mortgages to sustain their investments. The market outlook is further strained, with an abundant supply of high-end properties and secondary market prices remaining high, leading to a forecasted decline in yields.However, Hanoi’s real estate future looks promising due to major developments on the horizon. Authorities have approved a VND925 trillion (US$38 billion) sports complex project, developed by Vingroup, which willinclude a 135,000-seat stadium, the second largest in the world. This development is part of an OlympicSports Urban Area spanning more than 9,000 hectares, which is expected to significantly boost the city's infrastructure and attractiveness for both domestic and international investors.Download to see insights from other country marketsDownload

Bali’s property market showed strong activity in 2025, driven by tourism recovery and heightened investor interest. Property prices continued to rise, particularly in commercial sectors such as hotels, offices, and retail, while villas and short-term rental properties remained highly sought after by both local and foreign buyers.The steady return of national and international visitors has boosted rental yields and investor confidence.Prime Markets and YieldsCanggu and Berawa remain the island’s most sought-after areas for short-term rentalsand lifestyle buyers, with expected gross annual rental yields of 10–15% in 2026.Uluwatu, Bingin, and Bukit continue to attract high-end buyers for luxury cliff-top andocean-view villas, offering yields of 12–17%. Seminyak and Petitenget maintain stabledemand, with rental returns around 8–12%, while Ubud’s cultural and wellness focusdraws longer-stay guests, also yielding 8–12%.Emerging AreasEmerging locations such as Tabanan, Pererenan, Kedungu, and North/East Bali are gaining attention for affordable entry points and strong appreciation potential. Investors in these zones can expect yields of 10–16% or higher, benefiting from lower purchase prices and growth opportunities.Market Trends and OutlookLooking ahead to 2026, price growth in established markets is forecast at 5–10%, with higher potential in emerging subregions. Villas remain the most profitable asset type, and many investors are adopting blended rental strategies, combining short-term bookings during peak periods with medium-term stays to maximise returns.Sustainable and boutique developments that cater to eco-conscious and lifestyle-oriented buyers are likely to take precedence as market sophistication increases.Bali’s combination of tourism strength, improving infrastructure, and diverse investment appeal keeps the market outlook positive, with prime areas leading rental returns and emerging regions offering compelling opportunities for capital growth.Download to see insights from other country marketsDownload

Greece's real estate market, entering 2026, has completed its post-crisis recovery and is now moving into a phase of sustainable, structurally driven growth. The country's appeal to foreign buyers is now centred around relative affordability, improved lifestyle offerings, and a growing depth to the market, moving away from distressed pricing and rapid rebounds. Over the past decade, residential prices have steadily risen, particularly after 2021, with the recovery fuelled by a resurgence in tourism, increased foreign demand, and renewed domestic confidence.Despite these gains, Greece still offers a discount compared to most Western European markets, maintaining its attraction to international investors.As the market shifts from catch-up growth to long-term expansion, price increases are expected to slow in 2026, driven by tighter supply, rising construction costs, and a focus on quality housing. Foreign interest continues to play a key role, with buyers drawn to locations that offer sustainable value rather than short-term incentives.Athens, particularly its southern suburbs, remains a hotspot for both lifestyle and investment buyers, while Thessaloniki, Crete, and select island destinations are gaining attention as diversified markets. Supply constraints and Greece’s positive macroeconomic outlook, alongside a resilient tourism sector, limit downside risks, making it a solid long-term investment choice in Europe.Download to see insights from other country marketsDownload

Australia’s housing market delivered solid gains in 2025, with national home values rising 8.6%, adding around $71,400 to the median dwelling price, the strongest annual growth since 2021.All capital cities and regional markets recorded increases, led by Darwin (+18.9%), while Melbourne saw the smallest rise at 4.8%.However, momentum began to cool in December, when the national Home Value Index recorded its smallestmonthly gain in five months (+0.7%). Sydney and Melbourne both declined by -0.1%, marking the first monthly fall in over a year. Cotality’s research director Tim Lawless attributes this softening to renewed concerns that interest rates may remain “higher for longer”, along with worsening affordability and cost-of-living pressures. Growth has increasingly been driven by the lower and middle segments of the market, as affordability pressures continue to steer buyers away from higher-priced homes. Upper-quartile values rose just 0.2% in December, compared with 1.1% growth in the more affordable segments. Regional markets remain more resilient, posting 9.7% growth for the year, outperforming the combine capitals at 8.2%. Western Australia’s regions (+16.1%) and regional Queensland (+12.6%) were the standout performers.Outlook for 2026 While 2025 closed strongly, the outlook for 2026 is more cautious. Uncertainty around inflation, interest rates, affordability and household debt is expected to weigh on confidence. That said, ongoing housing supply shortages should help prevent any significant downturn in home values.For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’reconsidering selling, buying, or investing, now is the time to explore your options. Contact our team atsales@iqiwa.com.au to discuss your property goals today.Download to see insights from other country marketsDownload