India has emerged as the highest-yielding real estate market across the Asia Pacific region during the first quarter of calendar year 2026, according to a new report by CBRE. The strong performance highlights growing investor confidence in India’s property sector amid robust economic growth and expanding corporate activity.
The report revealed that India recorded a massive 189 per cent year-on-year surge in real estate investment volumes during Q1 2026, reaching approximately $2.3 billion compared to nearly $840 million during the same period last year. Among Asia Pacific markets, only Singapore outperformed India in overall investment growth.
According to CBRE, India currently delivers the highest capitalisation (cap) rates across all major property categories in the region, including office spaces, retail, logistics, hotels, and student housing. In several segments, Indian yields exceed competing markets by more than 300 basis points, making the country especially attractive for global investors seeking stronger returns.
Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East and Africa at CBRE, said the market is witnessing broad-based demand driven by India’s strong economic fundamentals, expanding corporate ecosystem, and rising consumer-led growth.
He noted that international investors who were previously cautious are now increasingly exploring opportunities in Indian real estate, particularly as more institutional-grade assets become available in the market.
The report also pointed to rising participation from domestic institutions, family offices, and international capital market players. Investors are increasingly entering the sector through direct acquisitions, Real Estate Investment Trusts (REITs), and structured debt instruments.
India has also become one of the leading destinations for real estate debt investment in the Asia Pacific region, reflecting the gradual maturity of its property financing and capital market ecosystem.
In the Grade A office segment, India’s cap rates range between 7.5 per cent and 8.4 per cent in prime central business districts — significantly higher than markets such as Singapore and Japan, where yields remain much lower.
India has additionally ranked among the top three preferred destinations in Asia Pacific for Grade A office investment enquiries, alongside Singapore and Japan.
The student housing segment has emerged as another standout performer, with yields ranging between 8.5 per cent and 9 per cent — roughly 320 basis points higher than comparable markets such as Australia.
Similarly, India’s institutional-grade logistics sector continues to attract attention, with cap rates significantly ahead of several competing Asian markets, including Vietnam.
Industry experts believe India’s higher yields compared to mature property markets such as Japan, Singapore, and South Korea reflect both the country’s fast-growing economy and the evolving nature of institutional participation within its real estate sector.
