Asian wealth advisers lifted their allocations to real estate to 52 percent this year. At the same time, they cut private credit interest to 48 percent, according to data from fintech platform iCapital.

That represents a 23 percentage point drop for private credit. The asset class led regional investment appetite among alternatives at 71 percent in 2025.

Advisers across Hong Kong and Singapore are redirecting client capital toward tangible property and infrastructure. They want hedges against currency swings, energy price spikes and softer consumer demand across mainland China. Appetite for broader real assets nearly doubled to 31 percent. Meanwhile, intent to boost overall alternative allocations over the next 12 months rose to 28 percent from 5 percent last year.

This rotation into brick-and-mortar assets signals a defensive posture among private banks and family offices managing regional wealth. Commercial real estate yields and residential assets offer predictable cash flows and physical collateral. Corporate lending margins, meanwhile, face pressure from rising bond yields and geopolitical friction.

For property developers and retail landlords across Asia-Pacific gateway cities, the capital shift provides a fresh pool of institutional private wealth. Traditional bank lending remains selective. Yet concentration risk shifts directly to real estate valuations, where high borrowing costs challenge refinancing schedules across regional hubs.

Interest in venture capital climbed to 39 percent, posting a double-digit percentage point gain compared to 2025 levels. Wealth managers attributed the rebound to active Asian capital markets. Much of that activity focused on artificial intelligence infrastructure and software companies seeking late-stage growth rounds.

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