New Delhi: India’s real estate sector is witnessing growing investor confidence across the Asia-Pacific region, supported by attractive yield returns and sustained demand in commercial property markets, as per CBRE’s Q1 2026 Asia Pacific Cap Rate Survey.
The report stated that India posted the strongest property yield performance in the Asia-Pacific region across multiple segments, including commercial offices, retail developments, warehousing assets, hospitality projects and student accommodation.
During the first quarter of 2026, investment inflows into the country’s real estate sector also witnessed significant growth, rising 189% compared to the same period last year. This made India the second-fastest growing property market in the Asia-Pacific region after Singapore.
CBRE noted that India’s Grade A office assets in core business districts reported cap rates between 7.50% & 8.40%, considerably above those seen in markets like Singapore, Tokyo & Seoul. In the student housing sector, yields ranged from 8.50% to 9.00%, while institutional logistics assets recorded cap rates between 7.15% & 7.75%.
The survey linked this growth to rising business activity, corporate expansion and growing confidence among institutional investors. It also noted that participation from domestic financial institutions, family-owned investment groups and overseas investors through REITs, direct asset purchases and structured financing models is steadily strengthening India’s real estate investment market.
“We are seeing genuine, broad-based demand across sectors driven by India’s economic fundamentals, its growing corporate base & a young, consumption-led population,” said Anshuman Magazine. He added that investors who were earlier cautious are now actively considering India as more institutional-grade assets become available in the market.
“What makes India’s yield story particularly compelling right now is that it does not stand alone, but is supported by strong occupier fundamentals,” said Ada Choi. She added that India’s combination of yield premium, investment volume growth & resilient demand dynamics makes it one of the most attractive real estate investment destinations in the region.
The report added that the steady rise of Global Capability Centres (GCCs), ongoing infrastructure projects and stronger consumer spending are likely to maintain long-term demand across key real estate segments such as offices, retail spaces, logistics hubs and hospitality assets in India.
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