India attracted USD 5.5 billion in cross-border real estate investments during the first nine months of 2026, around 50 per cent higher than the USD 3.7 billion deployed in mainland China. The growing inflow of overseas capital reflects India’s increasing prominence among global institutional investors seeking opportunities across commercial real estate, development land and emerging asset classes, according to a Savills Research report.
The report said India’s real estate market recorded USD 14.3 billion in transactions over the past four quarters, including land deals, marking a 13 per cent increase in dollar terms. The report lists Nicholas Wilson, Senior Director, Strategic Research and Advisory, Asia Pacific Capital Markets at Savills, as its research contact.
Data centres have emerged as a major investment destination in India’s real estate market, attracting USD 3.9 billion in capital during 2026. This was nearly twice the investment recorded in the office segment, reflecting growing institutional interest in digital infrastructure and large-scale development projects.
The report attributed the investment momentum to major development commitments involving companies such as AirTrunk and EQT, alongside hyperscalers expanding their infrastructure presence in India. Development land, however, continues to represent the largest individual investment category in the country’s real estate market.
The growing interest in data centres also reflects a broader shift in institutional capital towards infrastructure-linked assets. Across the Asia-Pacific region, data centre transactions recorded the strongest sectoral growth, increasing 79 per cent during the first nine months of 2026 compared with the corresponding period last year.
Regional Investment Activity
Real estate transaction volumes across the Asia-Pacific region reached nearly USD 200 billion during the first nine months of 2026, registering a 27 per cent increase year-on-year. Retail transactions grew 36 per cent, while office, industrial and hotel segments each recorded growth of around 22 per cent during the period.
Apartments were the only major segment to witness a decline, with transaction volumes falling 12 per cent. Among regional markets, Singapore recorded a 220 per cent increase in investment volumes, while Taiwan’s transactions doubled, supported by large deals and platform acquisitions.
India’s performance comes amid a broader recovery in regional investment activity, although capital deployment remains concentrated among large institutional buyers. Savills said the 25 biggest buyers accounted for 47 per cent of Asia-Pacific real estate transaction volumes during the first half of 2026, the highest proportion since at least 2016.
Rental Growth Supports Investment
Savills said India’s investment appeal is supported by relatively high office yields and rental growth. Grade A office assets in the country offer yields of around 7.75-8 per cent, among the highest nominal returns in the Asia-Pacific region, providing investors with an attractive income proposition.
The report described India as one of the few markets offering “high income yields and income growth”. Office rentals are rising by around 7-8 per cent annually, while yields remain 60-80 basis points above India’s 10-year government bond yield of 7.2 per cent.
The report also identified India’s urbanisation trajectory as a factor supporting long-term real estate demand. Around 36 per cent of India’s population currently lives in urban areas, compared with 66 per cent in China, but India is adding approximately 12 million urban residents annually, higher than China’s annual increase.
Savills noted that India is adding “about 12 million urban residents a year, more than China”. This expansion is expected to support demand for commercial spaces and other real estate assets as cities grow and economic activity becomes increasingly concentrated in urban centres.
Global Capital Allocation Shifts
The broader Asia-Pacific investment market is witnessing a recovery in transaction activity, although capital deployment remains concentrated among a relatively small group of large investors. Transactions exceeding USD 500 million have been particularly active in Singapore, Australia, South Korea and Japan, while mid-market assets continue to face a relatively smaller pool of potential buyers.
Savills noted that the 25 largest buyers accounted for 47 per cent of regional real estate transaction volumes in the first half of 2026, up from 34 per cent two years earlier. The top 10 investors alone accounted for nearly a third of the total, indicating that large institutional players are driving a significant share of market activity.
For India, the combination of foreign capital inflows, rising data centre investments and office rental growth is strengthening its position in the regional real estate investment landscape. However, the report noted that global investors are also assessing pricing conditions and opportunities in other Asian markets while determining their future capital allocation strategies.
