India Leads Asia Pacific in Real Estate Yields, Investment Volumes Soar
According to a recent report from CBRE, India offers the highest real estate yields across every major asset class in the Asia Pacific region. The country witnessed a 189 per cent year-on-year jump in investment volumes in Q1 CY 2026, solidifying its position as a prime destination for real estate investments.
Key Highlights:
- Investment Volumes: India recorded a 189 per cent year-on-year jump in investment volumes in Q1 CY 2026, with volumes rising to $2,295.19 million from $839.85 million a year earlier.
- Cap Rates: Cap rates in India consistently outpace every other market in the region across office, retail, logistics, hotels, and student housing sectors, with some cases seeing a difference of up to 320 basis points.
- Grade A Office Cap Rates: India's Grade A office cap rates range from 7.50 per cent to 8.40 per cent in core central business district locations, compared to 3.25 per cent to 3.80 per cent in Singapore and 2 per cent to 3 per cent in Tokyo.
- Student Housing Yields: Student housing yields in India stood at 8.50 per cent–9 per cent, around 320 basis points higher than the next-highest market, Australia.
- Institutional-Grade Logistics Cap Rates: Institutional-grade logistics cap rates in India stand at 7.15 per cent–7.75 per cent, around 115 basis points more than the second-ranked market, Vietnam with the rates of 6 per cent–7 per cent.
Expert Insights:
"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.
India's Real Estate Outlook:
India is one of the top markets for real estate debt interest in Asia Pacific, signalling maturing capital markets, according to the report. The country is also named among the top three preferred markets for Grade A office investment enquiries in Asia Pacific, alongside Singapore and Japan.
Disclaimer:
This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor.