Cross-border property flows accelerate across global markets

Cross-border investment in commercial property surged 56 percent to $71.8 billion in the first half of 2026, driven by burgeoning activity in Asia and Europe, according to data from JLL. Overseas investment in Asian real estate quadrupled to $19.3 billion, while European cross-border investment climbed 31 percent to $39.9 billion.

This resurgence marks a significant turnaround following a prolonged period of restraint due to high interest rates, valuation uncertainty, and stricter financing conditions. The gains outpaced the overall commercial property market, where global building transactions rose by 10 percent year-on-year to $604.6 billion. Premium office assets saw the biggest boost, with international investors increasingly drawn to well-situated buildings with strong tenant prospects.

JLL's Fraser Bowen noted a resurgence in the office sector, with foreign buyers showing greater appetite for large-scale transactions in established markets. Singapore emerged as the top recipient of cross-border commercial property investments, attracting $8.7 billion in the first half alone. Asia-Pacific commercial real estate investment also reached its strongest first-half level in years, totaling $92.5 billion, up 35 percent year-on-year.

The return of international capital coincided with improved liquidity across various property segments, including retail, industrial, logistics, hotels, and offices. However, the office recovery remains selective, with buyers focusing on prime buildings, major cities, and assets with strong income visibility. Despite the overall market's recovery, borrowing costs and geopolitical uncertainties remain potential constraints on the pace of cross-border transactions, particularly in the second half.