India stands out in the Asia Pacific region for offering the highest real estate yields across various asset classes. In the first quarter of 2026, the country witnessed a significant 189% year-on-year increase in investment volumes, reaching $2,295.19 million, indicating a growing interest in the market.
According to a report by CBRE, India’s cap rates surpass those of other markets in the region, including office, retail, logistics, hotels, and student housing sectors. The investment volume surge positions India as the second-highest after Singapore, which experienced a 364% year-on-year rise.
Anshuman Magazine, Chairman & CEO of CBRE for India, South-East Asia, Middle East & Africa, attributed this growth to India’s strong economic fundamentals, expanding corporate sector, and a young, consumption-driven population. He noted a rising interest from global investors eyeing India for capital deployment, anticipating further momentum as more high-quality products enter the market.
The report also highlighted sustained interest from domestic institutions, family offices, and global capital markets players in Indian real estate. India’s real estate debt market is gaining traction in the Asia Pacific region, indicating the maturation of capital markets in the country.
India’s Grade A office cap rates in prime central business districts range from 7.50% to 8.40%, surpassing rates in Singapore and Tokyo. The country is among the top three preferred markets for Grade A office investments in the Asia Pacific region, along with Singapore and Japan, reflecting a positive investor sentiment.
In India, student housing yields are notably higher at 8.50%–9% compared to other markets, with logistics cap rates also showing strength at 7.15%–7.75%. The higher cap rates in India, relative to mature markets, reflect the evolving nature of the market, increased institutional participation, and the inherent yield premium of a rapidly growing economy.
