India emerges as APAC’s highest-yield market: CBRE
- Bhalchandra Chorghade

- 3 hours ago
- 3 min read

Mumbai: India has emerged as the most attractive real estate yield market across the Asia Pacific region, driven by strong economic fundamentals, rising institutional participation and sustained occupier demand, according to a latest survey by CBRE. The consultancy’s Q1 2026 Asia Pacific Cap Rate Survey shows that India offers the highest yields across every major asset class, including office, retail, logistics, hotels and student housing, significantly outperforming mature markets such as Singapore, Japan and South Korea.
The findings come at a time when global investors are increasingly recalibrating their Asia Pacific strategies amid geopolitical uncertainty and slowing growth in several developed economies. India’s real estate market, backed by strong domestic consumption, infrastructure expansion and a growing corporate ecosystem, is increasingly being viewed as a high-growth alternative capable of delivering superior returns.
Investment volumes in Indian real estate surged 189 per cent year-on-year during the January-March quarter of 2026 to USD 2.29 billion, up from USD 839.85 million in the corresponding period last year. This marks the second-highest growth rate in Asia Pacific after Singapore, where investment volumes rose 364per cent.
“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 product comes to market,” he added.
Office Sector
India’s attractiveness is particularly visible in the office sector, where Grade A office cap rates in core central business districts range between 7.50 per cent and 8.40 per cent. In comparison, yields in Singapore stand at 3.25 per cent to 3.80 per cent, Tokyo at 2 per cent to 3 per cent, and Seoul at 3.75 per cent to 4.65 per cent. This substantial yield spread is drawing increasing attention from institutional investors seeking better risk-adjusted returns.
The student housing segment has emerged as another standout performer, delivering yields of 8.50 per cent to 9 per cent, nearly 320 basis points higher than Australia, the next-best market in the region. Similarly, India’s institutional-grade logistics assets offer cap rates of 7.15per cent to 7.75per cent, comfortably ahead of Vietnam’s 6per cent to 7per cent.
Industry experts believe these elevated yields reflect India’s position as a rapidly expanding emerging economy where institutional participation and price discovery mechanisms are still evolving. While mature markets offer stability, India provides the potential for stronger capital appreciation and income generation.
The report also underlined the growing maturity of India’s real estate capital markets. Apart from equity investments, global and domestic investors are increasingly participating through REITs, alternative investment funds (AIFs), structured debt, and private credit vehicles. India is now regarded as one of the leading markets in Asia Pacific for real estate debt interest, signalling a broader evolution of the sector beyond traditional equity-led investments.
“What makes India’s yield story particularly compelling right now is that it does not stand alone, but is supported by strong occupier fundamentals,” said Ada Choi, Head of Asia Pacific Research, CBRE.
The rapid expansion of Global Capability Centres (GCCs), government-led infrastructure spending, and rising domestic consumption are further strengthening demand across office, retail, logistics and hospitality assets.
However, challenges remain. Investors surveyed by CBRE identified slower-than-expected economic growth as a key risk. While lending conditions remain accommodative, any tightening in monetary policy or rise in credit costs could impact capital flows into the sector.
Despite these concerns, India’s real estate sector appears firmly positioned as the region’s most compelling high-yield investment destination, combining strong returns with long-term structural growth drivers.





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