NEW DELHI: Commercial real estate investment volumes in India increased 15% year-on-year during the first nine months of 2026, while cross-border investment in the country’s real estate market stood at USD 5.5 billion, according to a report by Savills.
India attracted about 50% more cross-border capital than mainland China, which received USD 3.7 billion during the period, according to the report.
The report said interest from large global investors in India continued to increase as the market offered a combination of relatively high yields and rental growth.
“Strong occupier demand, healthy rental growth and competitive yields are supporting investor confidence in the market,” said Anurag Mathur, CEO of the company.
Grade A office yields at 7.75-8%
Grade A office yields in India stood at around 7.75-8%, among the highest nominal yields across Asia Pacific.
Office rentals were increasing at approximately 7-8% annually, providing investors with income growth in addition to relatively higher entry yields, the report said.
India traded approximately USD 14.3 billion of real estate, including land, during the four quarters ended September 2026, an increase of 13% in US dollar terms.
Data centres accounted for approximately USD 3.9 billion of investment during 2026, nearly twice the investment recorded in offices, while development land remained the largest individual category.
APAC investment reaches nearly USD 200 billion
Across Asia Pacific, commercial real estate investment volumes reached nearly USD 200 billion during the first nine months of 2026, increasing 27% year-on-year.
Data centres recorded the highest growth at 79%, followed by retail at 36%. Investment volumes in office, industrial and hotel assets increased approximately 22% each, while apartments declined 12%.
Savills said Q3 2026 data remained preliminary and could be revised upwards as additional transactions are recorded.
Large buyers account for 47% of APAC investment
The recovery in Asia Pacific investment activity remained concentrated among large investors.
The 25 largest buyers accounted for 47% of APAC transaction volumes during the first half of 2026, the highest proportion recorded since at least 2016 and up from 34% two years earlier.
The 10 largest buyers accounted for about one-third of transaction volumes. Transactions valued at more than USD 500 million were particularly active in Singapore, Australia, South Korea and Japan, even as the overall number of transactions remained broadly flat.
