India emerges as highest-yielding real estate market in Asia Pacific

India is now the highest-yielding real estate market in the Asia Pacific region, as per a CBRE survey. Strong demand and a 189% year-on-year rise in investment volumes in Q1 2026 are attracting significant global investor interest.

Strong demand across commercial property segments and higher real estate yields are driving growing global investor interest in India, with the country emerging as the highest-yielding real estate market in the Asia Pacific region, according to a survey by real estate consultancy firm CBRE.CBRE's Q1 2026 Asia Pacific Cap Rate Survey showed that India recorded the highest real estate yields across major asset classes including office, retail, logistics, hotels and student housing, supported by rising commercial demand, expanding corporate activity and increasing institutional investments.The report also noted that India witnessed a 189 per cent year-on-year rise in real estate investment volumes during the January-March quarter of 2026, marking the second-highest growth rate in the Asia Pacific region after Singapore.

Expert Insight: Growing Investor Confidence

"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.He added, "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 Story: By the Numbers

According to the survey, India's Grade A office cap rates ranged between 7.50 per cent and 8.40 per cent in core business districts, significantly higher than Singapore, Tokyo and Seoul. The report further said India's student housing segment offered yields of 8.50-9.00 per cent, while institutional-grade logistics assets recorded cap rates of 7.15-7.75 per cent.

Strong Fundamentals Supporting Growth

The survey further highlighted that 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."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.She added, "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."

Long-Term Demand Drivers

The report also highlighted that 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. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)