India Leads Asia-Pacific in Real Estate Yields, Says CBRE Report

India has emerged as the highest-yielding real estate market across the Asia-Pacific region, according to a new report by global property consultancy CBRE. The report highlights growing investor confidence in the country’s commercial and residential property sectors, driven by strong occupier demand, expanding urban infrastructure, and rising institutional investments.

CBRE’s findings show that India recorded the highest cap rates across major asset classes in the APAC region during the first quarter of 2026. This includes office spaces, retail, logistics, hotels, and student housing. Higher cap rates generally indicate stronger potential returns for investors, making India increasingly attractive compared to more mature property markets such as Singapore, Japan, and South Korea.

The report also noted a sharp rise in commercial real estate investments in India during Q1 2026. Investment volumes reportedly jumped by 189 per cent year-on-year, making India one of the fastest-growing property investment markets in the region. Analysts attribute this growth to rising participation from domestic institutions, family offices, REITs, and global investment firms looking for long-term opportunities in India’s urban expansion story.

India’s office market continues to remain one of the biggest drivers of investor interest. According to CBRE, Grade A office spaces in India offer significantly higher yields than comparable assets in cities like Tokyo, Singapore, or Seoul. Demand from global capability centres (GCCs), technology companies, and financial firms has continued to strengthen leasing activity across cities such as Bengaluru, Hyderabad, Mumbai, and Delhi-NCR.

The logistics and warehousing sector has also emerged as a major growth area. With e-commerce expansion, manufacturing growth, and supply-chain diversification, investors are increasingly looking at industrial and logistics parks across India as stable long-term assets. Student housing and hospitality assets are similarly attracting attention due to rising mobility, tourism recovery, and changing urban lifestyles.

However, experts also caution that global economic uncertainty and possible policy tightening could affect future momentum. Discussions across investor communities reflect both optimism and caution, especially around rising property prices and long-term affordability in major cities. Some market observers believe infrastructure-led regions such as Noida and Greater Noida could continue attracting investment due to upcoming projects like Jewar International Airport and expanding metro connectivity.

Despite these concerns, India’s combination of high yields, economic growth, and expanding institutional participation is positioning the country as one of the most attractive real estate investment destinations in the Asia-Pacific region.