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India's Real Estate Resilience: Why Asia-Pacific's Bright Spot Defies Global Gloom

A new report says India's real estate market is a standout performer in the Asia-Pacific region. Strong domestic fundamentals and a skilled talent pool are key reasons for this resilience. The office market, in particular, has a very positive outlook for the coming year. Major cities are leading this growth as demand shifts towards quality and sustainable workspaces.

Key Points: India Among Asia-Pacific's Most Resilient Real Estate Markets

  • India's office market outlook is among the strongest in the Asia-Pacific region for 2026
  • Cities like Bengaluru and Mumbai lead with 7.5-9% rental growth expected
  • Grade A office stock in top cities surpassed one billion square feet in 2025
  • Occupiers now prioritize efficient, sustainable offices over just large floor areas
2 min read

India among Asia-Pacific's most resilient real estate markets despite global uncertainty: Report

Knight Frank report highlights India's resilient property market, driven by strong office demand and a maturing ecosystem, despite regional economic moderation.

"India continues to stand out as a strategic growth market. The country’s affordability, depth of talent, regulatory stability and a maturing workplace ecosystem enhance its appeal. - Shishir Baijal, Knight Frank India"

New Delhi, Dec 21

India is emerging as one of the most resilient and opportunity-rich real estate markets in the Asia-Pacific region, even as global economic uncertainty and slower regional growth weigh on property markets elsewhere, a new report said on Sunday.

In its Asia-Pacific Outlook 2026, Knight Frank said India continues to stand out due to strong domestic fundamentals, a large and skilled talent pool, and a steadily maturing real estate ecosystem.

While the Asia-Pacific economy is expected to moderate in 2026 amid changing trade policies and cautious capital flows, India’s property market is set to benefit from sustained demand and relatively stable conditions.

The report highlighted that India enters 2026 with one of the strongest office market outlooks in the region.

Expansion by global capability centres, steady hiring in the technology sector and strong occupier confidence helped India record one of the highest leasing volumes in Asia-Pacific during 2025.

Cities such as Bengaluru, Mumbai and the National Capital Region continue to lead the market, with office rentals expected to grow between 7.5 per cent and 9 per cent year-on-year in 2026.

India’s office market also crossed a major milestone in 2025, with Grade A office stock across the top eight cities exceeding one billion square feet.

Commenting on the findings, Shishir Baijal, Chairman and Managing Director of Knight Frank India, said the country remains a strategic growth destination for global occupiers.

“India continues to stand out as a strategic growth market. The country’s affordability, depth of talent, regulatory stability and a maturing workplace ecosystem enhance its appeal relative to other global hubs,” he noted.

The report pointed out that quality and flexibility will define India’s office market in the coming year.

With several early-2000s office buildings nearing functional obsolescence, landlords are investing more in upgrades such as better air-conditioning systems, improved natural lighting, modern workplace technologies and sustainability features.

Occupiers are increasingly willing to pay more for efficient, sustainable and employee-friendly offices rather than just large floor areas, the report said.

- IANS

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Reader Comments

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Priya S
While the office market is booming, I hope this growth is inclusive. The report mentions top 8 cities, but what about tier-2 and tier-3 cities? Development needs to be more widespread to truly benefit the entire country and reduce pressure on metros like Mumbai and Delhi.
R
Rohit P
One billion square feet of Grade A office space! That's a massive milestone. It shows how far we've come since the early 2000s. The upgrade of older buildings is crucial – no one wants to work in a dingy, outdated office anymore. Quality over quantity is the new mantra.
S
Sarah B
Interesting read. The resilience is impressive, especially with global headwinds. The point about Global Capability Centers (GCCs) expanding is key. India is becoming the back-office and innovation hub for the world. This should translate to more stable, high-quality jobs.
V
Vikram M
Good news, but let's not forget the residential side. With office rentals going up 7-9%, I hope salaries keep pace and housing remains affordable for the professionals driving this growth. Otherwise, the commute and cost of living in these cities will become unbearable.
K
Karthik V
"Regulatory stability" mentioned by Mr. Baijal is so important. It gives foreign investors confidence. Compared to some of our neighbours, India's policy environment has been more consistent in recent years, which is a big plus for long-term real estate investments.

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