India Emerges as a Key Destination for Global Real Estate Investment
India is becoming a top choice for international real estate investors, driven by its strong economic fundamentals, policy support, and rising demand for high-quality assets, according to Neil Murray, CEO at Real Estate Management Services.
Global Multinationals Shift Focus to India
As global capital shifts towards high-quality, income-generating assets, India is increasingly seen as a strategic allocation rather than a tactical bet, offering both steady income and long-term capital appreciation, said Neil Murray, Global Executive Board Member and CEO, Real Estate Management Services, JLL.
Why India is an Attractive Market for Global Portfolios
- Strong economic fundamentals and political stability create a predictable environment for long-term capital.
- The IMF projects 6.4% GDP growth for 2025 and 2026, with FY26 revised to 7.3% after 8.0% growth in H1.
- Core commercial real estate assets in India are generating yields in the 7.5% to 8.5% range, very attractive by global standards.
- India hosts over 1,950 GCCs across 3,000 units, with 915 million sq ft Grade A office stock and 225 million sq. ft absorption, supported by a young, skilled workforce.
Factoring Geopolitical Risks in India
Geopolitical volatility is now structural, not temporary, requiring multinational clients to prioritise resilience, flexibility, and optionality in portfolios, said Murray.
- Capital is shifting toward stable real assets, with a focus on core, high-quality Class A office and logistics.
- Growth-driven, policy-supported markets like India remain attractive.
- India’s strong economic trajectory continues to support office and logistics demand, while data centres are expanding rapidly, driven by power availability and strategic location.
Resilient Strategies for Uncertain Markets
In an environment of constant uncertainty, resilient strategies are critical, said Murray.
- Supply chain shifts, demographic changes, and rapid technological advances are reshaping real estate decisions.
- Clients are increasingly adopting enhanced risk management, scenario planning, and stress-testing, alongside agile models and diversification, to ensure portfolios can absorb disruptions and emerge stronger over time.
Future-Proofing Real Estate
The next big trend in commercial real estate is the shift from utility-led to purpose-driven real estate, said Murray.
- Offices are evolving into ‘destination workplaces’ that foster culture, collaboration, and human connection, rather than just productivity.
- Success now depends on designing high-performance, people-centric environments, supported by AI and smart systems that enable continuous, data-driven adaptation to how employees use and experience workspaces.
Stay Ahead of the Curve with ET Prime
Subscribe to The Economic Times Prime and read the ET ePaper online to stay ahead of the curve in business news, breaking news, and latest updates.
Follow ET Prime on WhatsApp
Stay connected with ET Prime on WhatsApp and get the latest news updates, business insights, and market analysis.