India's real estate market has emerged as the preferred investment destination in Asia-Pacific, with cap rates outpacing every other market across all major asset classes in Q1 2026, according to CBRE's cap rate survey. The country recorded an 189% year-on-year jump in investment volumes, the second-highest growth rate in the region after Singapore's 364% growth. As reported by CBRE, this surge comes from sustained interest from domestic institutions, family offices, and global capital markets players increasingly allocating to Indian real estate through direct acquisitions, REITs, and structured debt instruments. "We are seeing genuine, broad-based demand across sectors driven by India's economic fundamentals, its growing corporate base, and a young, consumption-led population," said Anshuman Magazine, Chairman & CEO, CBRE. "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."
India's yield advantage extends across multiple real estate sectors, with grade A office cap rates ranging from 7.50 to 8.4% in core central business district locations across Gurgaon, Mumbai and Bengaluru, significantly higher than Singapore's 3.25 to 3.8%, Tokyo's 2 to 3%, and Seoul's 3.75 to 4.65%. According to CBRE's survey, student housing yields 8.5-9%, approximately 320 basis points higher than Australia's next-highest market at 5.25-5.50%. Institutional-grade logistics cap rates stand at 7.15-7.75%, around 115 basis points higher than Vietnam's second-ranked market at 6-7%. Prime shopping mall cap rates in India ranged between 7.15% and 7.75%, while urban hotel assets delivered yields of 6.35-7.05%. "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, CFA, CBRE. "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."
Global Capability Centres (GCCs) are emerging as a major driver of India's real estate market, with multinational IT, ITeS and ER&D operations adding nearly 1.7 million jobs since FY20, bringing total sectoral employment to around 4.2 million, according to a report from Bengaluru-based consultancy Wizmatic. The sector's exports are projected to rise to around USD 164 billion in FY26 from USD 153 billion in FY25. "The GCC-led expansion across NCR is gradually bringing newer cities like Faridabad into sharper focus," said Uddhav Poddar, CMD, Bhumika Group. "With infrastructure upgrades such as the Delhi–Mumbai Motorway, FNG corridor and metro connectivity improving accessibility, Faridabad is emerging as a strong prospective destination for MNCs, IT/ITeS firms and organised businesses." GCC occupiers are now being viewed as more stable long-term tenants than conventional outsourcing firms in several office corridors, particularly in NCR and Bengaluru. "At the commercial level, the impact is becoming increasingly visible in long-term office space demand," noted Sanchit Bhutani, Managing Director, Group 108. "Companies operating within GCC ecosystems are showing a stronger preference for organised regions where office, retail and residential infrastructure function together."
According to CBRE's analysis, India's yield story is supported by strong occupier fundamentals, with investors most positive about tenant demand and rental growth across APAC. India ranks among the top markets on both tenant demand and rental growth metrics. The growth in investments is being supported by rising participation from domestic institutions, family offices and global investors through direct acquisitions, REITs and structured debt instruments. "The growth in investments is being supported by rising participation from domestic institutions, family offices and global investors through direct acquisitions, REITs and structured debt instruments," noted the CBRE report. "Growth in Global Capability Centres (GCCs), infrastructure expansion and rising domestic consumption are supporting long-term demand across office, logistics, retail and hospitality real estate segments," the survey highlighted. India is named among the top three preferred markets for grade A office investment enquiries in APAC, alongside Singapore and Japan. CBRE also highlighted rising interest in Indian real estate debt opportunities as AIFs, non-bank lenders and structured credit platforms deepen the country's property financing ecosystem.
