NEW DELHI — India offered the highest real estate yields across major asset classes in the Asia Pacific region in the first quarter of 2026, while investment volumes jumped 189% from a year earlier, according to a new CBRE report.
The report said India’s capitalization rates outpaced other major markets in the region across office, retail, logistics, hotels and student housing. In some sectors, the gap was as much as 320 basis points.
India recorded real estate investment volume of $2.29 billion in the first quarter, up from $839.85 million a year earlier. Singapore led the region in investment growth, posting a 364% year-over-year increase.
“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, India, South-East Asia, Middle East & Africa, 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 products come to market,” he added.
The report said domestic institutions, family offices and global capital markets players continue to show strong interest in Indian real estate through direct acquisitions, REITs and structured debt instruments.
CBRE said India is also among the top markets in Asia Pacific for real estate debt interest, reflecting the maturation of its capital markets.
India’s Grade A office cap rates ranged from 7.50% to 8.40% in core central business district locations, compared with 3.25% to 3.80% in Singapore and 2% to 3% in Tokyo.
The report named India among the top three preferred markets for Grade A office investment inquiries in Asia Pacific, alongside Singapore and Japan.
Student housing yields in India stood at 8.50% to 9%, about 320 basis points higher than Australia, the next-highest market. Institutional-grade logistics cap rates in India ranged from 7.15% to 7.75%, about 115 basis points above Vietnam, where rates were 6% to 7%.
CBRE said India’s higher cap rates compared with more mature markets such as Japan, Singapore and Korea reflect its still-developing institutional investment market, ongoing price discovery and the yield premium associated with a high-growth emerging economy. (Source: IANS)
