New Delhi, May 21: India has emerged as the leader in real estate yield in the Asia-Pacific region for the first quarter of the calendar year 2026. The country witnessed a remarkable 189% year-on-year surge in investment volume.
According to a report by CBRE, India’s capitalization rates in the office, retail, logistics, hotel, and student housing sectors consistently outperform all other markets in the region. In some instances, the difference reaches up to 320 basis points.
In Q1 2026, the investment volume in Indian real estate soared to $2.3 billion, up from $839.85 million a year earlier, placing India second only to Singapore. Singapore achieved the top position with a staggering 364% annual growth in investment volume.
Anshuman Magazine, Chairman and CEO of CBRE (India, Southeast Asia, Middle East, and Africa), stated, “India’s economic foundation, expanding corporate base, and young, consumption-driven population are driving real and robust demand across all sectors.”
He added, “Cautious global investors are now actively looking to invest capital here, and we expect this momentum to strengthen as more institutional-grade products enter the market.”
The report highlights the ongoing interest from domestic institutions, family offices, and global capital market players, who are increasingly investing in Indian real estate through direct acquisitions, REITs, and structured debt instruments.
India is recognized as one of the top markets for real estate debt in the Asia-Pacific region, indicating a sign of mature capital markets.
The report notes that the Grade A office cap rates in India range from 7.50% to 8.40% in prime central business districts, while in Singapore, they stand at 3.25% to 3.80%, and in Tokyo, between 2% and 3%.
Alongside Singapore and Japan, India is among the top three preferred markets for Grade A office investment inquiries in the Asia-Pacific region.
The returns on student housing in India range from 8.50% to 9%, significantly higher than the second-ranked market, Australia, by nearly 320 basis points. The institutional-grade logistics cap rates in India range from 7.15% to 7.75%, exceeding Vietnam’s rates (6% to 7%) by approximately 115 basis points.
Higher cap rates in India, compared to mature markets like Japan, Singapore, or Korea, reflect the ongoing development of institutional participation and pricing in the market, along with the natural return premium of a high-growth emerging economy.
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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