Global Capital Moves Toward Stability

As Gulf markets cool from their post-pandemic highs, investors are becoming more selective. Dubai’s market has slowed on transaction volume, while apartment prices dipped by around 3% year-on-year, signalling that momentum-led gains are becoming harder to find.

In this environment, global capital is rotating toward markets where returns are supported by fundamentals, stability and long-term demand, rather than short-term sentiment.

Japan stands out as one of the clearest beneficiaries. Tokyo has ranked as the world’s top city for cross-border real estate investment for seven consecutive years, while Asia-Pacific net buying intentions rose to 17%, up from 13% a year earlier.

Tokyo residential prices increased around 10% to 11% in 2025, with major cities forecast to grow another 5% to 6%this year. A weak yen, transparent ownership rules, tight prime office vacancy and rising data-centre demand continue to support Japan’s safe-haven appeal. 

Malaysia and India Offer Strong Structural Upside

Malaysia is the standout ASEAN market for higher structural upside. GDP grew 5.4% year-on-year in Q1 2026, inflation remained moderate at around 1.6%, and the OPR stayed supportive at 2.75%.

Johor is the key catalyst, driven by the Johor-Singapore Special Economic Zone, the upcoming RTS Link, Singapore-backed rental demand and major data-centre investment.

India offers scale and long-term demand. Its real estate sector is worth around USD 585 billion in 2026 and is projected to approach USD 927 billion by 2031, supported by technology-sector expansion and strong office absorption.

Outlook

The second half of 2026 will favour markets backed by demographics, infrastructure, policy and real demand.

Japan offers stability, Malaysia offers regional upside, and India offers scale. For investors, disciplined selection will matter more than chasing market momentum.