New Delhi: India offers the highest real estate yields across every major asset class in the Asia Pacific (APAC) region, according to global property consultant CBRE.
India's Grade A office cap rates range from 7.50% to 8.40% in core central business district locations as compared to 3.25% to 3.80% in Singapore, 2% to 3% in Tokyo, and 3.75% to 4.65% in Seoul. India is also named among the top three preferred markets for Grade A office investment enquiries in Asia Pacific, alongside Singapore and Japan.
Also Read: Lifestyle housing, senior living and second homes drive the next real estate demand wave: Industry experts
The company said that across office, retail, logistics, hotels, and student housing, cap rates in India consistently outpace every other market in the region, in some cases by as much as 320 basis points.
In the January-March quarter, India recorded a 189% year-on-year jump in investment volumes, the second-highest growth rate in the region after Singapore's 364%.
"Global investors who have been cautious till now are actively looking to deploy capital here, and we expect this momentum to strengthen further as more institutional-grade product comes to market,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.
The growth in India's commercial real estate investment volume in Q1 2026 comes on the back of sustained interest from domestic institutions, family offices, and global capital markets playersincreasingly allocating to Indian real estate through direct acquisitions, REITs, and structured debt instruments.
The CBRE survey also showed that India is one of the top markets for real estate debt interest in Asia Pacific, as non-bank lending, alternative investment funds (AIFs), and credit-focused vehicles grow.
"Across Asia Pacific, investors are most positive about tenant demand and rental growth, with India ranking among the top markets on both counts. At a time when geopolitical uncertainty is weighing on sentiment elsewhere in the region, India's combination of yield premium, investment volume growth, and resilient demand dynamics makes it one of the most attractive real estate investment destinations in the region,” said Ada Choi, CFA, Head of Asia Pacific Research, CBRE.
Also Read: Why luxury real estate remains a favourite among India’s rich despite macro & rate hike concerns
The student housing in India yields 8.50%–9%, around 320 basis points higher than the next-highest market, Australia (5.25%–5.50%). The institutional-grade logistics cap rates in India stand at 7.15%–7.75%, around 115 basis points more than the second-ranked market, Vietnam with the rates of 6%–7%.
For a global institutional investor managing a diversified Asia Pacific portfolio, the differential in yields - even after adjusting for currency and sovereign risk - represents a premium on returns.
India market now comprises multiple publicly listed entities across office and industrial assets, providing a measure of price transparency that did not exist five years ago. The growing pipeline of Global Capability Centres (GCCs), the government's infrastructure push, and rising domestic consumption are all underpinning real demand for commercial real estate across office, logistics, retail, and hospitality sectors.
India's Grade A office cap rates range from 7.50% to 8.40% in core central business district locations as compared to 3.25% to 3.80% in Singapore, 2% to 3% in Tokyo, and 3.75% to 4.65% in Seoul. India is also named among the top three preferred markets for Grade A office investment enquiries in Asia Pacific, alongside Singapore and Japan.
Also Read: Lifestyle housing, senior living and second homes drive the next real estate demand wave: Industry experts
The company said that across office, retail, logistics, hotels, and student housing, cap rates in India consistently outpace every other market in the region, in some cases by as much as 320 basis points.
In the January-March quarter, India recorded a 189% year-on-year jump in investment volumes, the second-highest growth rate in the region after Singapore's 364%.
"Global investors who have been cautious till now are actively looking to deploy capital here, and we expect this momentum to strengthen further as more institutional-grade product comes to market,” said Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE.
The growth in India's commercial real estate investment volume in Q1 2026 comes on the back of sustained interest from domestic institutions, family offices, and global capital markets playersincreasingly allocating to Indian real estate through direct acquisitions, REITs, and structured debt instruments.
The CBRE survey also showed that India is one of the top markets for real estate debt interest in Asia Pacific, as non-bank lending, alternative investment funds (AIFs), and credit-focused vehicles grow.
"Across Asia Pacific, investors are most positive about tenant demand and rental growth, with India ranking among the top markets on both counts. At a time when geopolitical uncertainty is weighing on sentiment elsewhere in the region, India's combination of yield premium, investment volume growth, and resilient demand dynamics makes it one of the most attractive real estate investment destinations in the region,” said Ada Choi, CFA, Head of Asia Pacific Research, CBRE.
Also Read: Why luxury real estate remains a favourite among India’s rich despite macro & rate hike concerns
The student housing in India yields 8.50%–9%, around 320 basis points higher than the next-highest market, Australia (5.25%–5.50%). The institutional-grade logistics cap rates in India stand at 7.15%–7.75%, around 115 basis points more than the second-ranked market, Vietnam with the rates of 6%–7%.
For a global institutional investor managing a diversified Asia Pacific portfolio, the differential in yields - even after adjusting for currency and sovereign risk - represents a premium on returns.
India market now comprises multiple publicly listed entities across office and industrial assets, providing a measure of price transparency that did not exist five years ago. The growing pipeline of Global Capability Centres (GCCs), the government's infrastructure push, and rising domestic consumption are all underpinning real demand for commercial real estate across office, logistics, retail, and hospitality sectors.
