India Emerges as APAC’s Top High-Yield Real Estate Market with 189% Investment Surge
New Delhi, May 21, 2023: India now offers the highest real estate yields across every major asset class in the Asia Pacific (APAC) region, according to CBRE’s Q1 2026 Asia Pacific Cap Rate Survey. The country recorded a massive 189% year-on-year jump in commercial real estate investment volumes during the first quarter, reaching $2,295.19 million. This explosive growth rate was second only to Singapore within the APAC region, driven by robust domestic and international institutional capital seeking premium returns.
According to the research, India’s cap rates consistently outpace competing regional markets, occasionally by as much as 320 basis points. For instance, India’s Grade A office cap rates in core central business districts range from 7.50% to 8.40%, significantly outperforming Singapore (3.25% to 3.80%) and Tokyo (2.00% to 3.00%). Additionally, India’s student housing yields reach up to 9.00%, while its institutional-grade logistics yields outpace second-ranked Vietnam. This yield premium reflects the natural advantages of a high-growth emerging economy alongside evolving institutional price discovery.
“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.”
The report notes that the widening market is expanding beyond traditional equity, maturing into a full-spectrum capital market with a surge in real estate debt interest, alternative investment funds (AIFs), and publicly listed REITs. While local survey respondents cited slower-than-expected economic growth as a potential risk factor, lending conditions remain broadly accommodative for the sector.
“What makes India’s yield story particularly compelling right now is that it does not stand alone, but is supported by strong occupier fundamentals. Across Asia Pacific, investors are most positive about tenant demand and rental growth, with India ranking among the top markets on both counts,” said Ada Choi, CFA, Head of Asia Pacific Research, CBRE. “At a time when geopolitical uncertainty is weighing on sentiment elsewhere in the region, India’s combination of yield premium, investment volume growth, and resilient demand dynamics makes it one of the most attractive real estate investment destinations in the region.”
