India emerges as high-yield real estate market in Asia Pacific: CBRE Report
New Delhi, May 21
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.
"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."
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.
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."
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
Reader Comments
Student housing yielding 8.5-9%? That's huge! With so many kids going to colleges in tier-2 cities now, makes sense. My cousin was looking for PG accommodation in Pune and the rents have gone through the roof. This is a great opportunity for developers to build quality student housing instead of those dingy hostels. Win-win for everyone!
189% jump in investment volumes! That's incredible. The GCC boom is real - every major company wants their India office now. But one thing bothers me - are we building enough quality infrastructure to support this growth? Our metro projects are running behind schedule, roads still get waterlogged. Need better urban planning to sustain this momentum 🏗️
As someone working in a GCC, I can confirm the demand is insane. Our company just rented another floor in Bangalore. But cap rates and yields sound good on paper - question is how much of this actually translates to jobs for local people? The report mentions 'institutional investors' - hope they're not just flipping buildings. We need long-term commitment, not just quick profits.
Interesting numbers! I work with a US-based fund that's looking at Indian logistics assets. The 7.15-7.75% yield on warehouses is very attractive when you compare it to the 4-5% in China right now. The Modi government's focus on industrial corridors and Dedicated Freight Corridors is making a real difference. India is finally getting noticed by serious global capital.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.