Investment in India's commercial real estate sector rose 15 per cent year-on-year in the first nine months of 2026, with cross-border inflows reaching $5.5 billion, according to a report by global property consultancy Savills released on 12 November 2026. The growth underscores India's rising appeal among institutional investors seeking yield in a competitive Asia-Pacific landscape.

India's Position in Asia-Pacific

Commercial real estate investment across the Asia-Pacific region climbed 27 per cent from a year earlier to nearly $200 billion during the January–September 2026 period, according to the Savills report. India stood out as one of the few markets in the region offering both relatively high rental yields and consistent income growth — a combination that is increasingly rare as capital chases returns in a tightening global rate environment.

Grade A Office Yields and Rental Growth

Grade A office assets in India are generating yields of 7.75–8 per cent, while rents are rising by as much as 8 per cent annually. These metrics are attracting both domestic and overseas buyers drawn to what analysts describe as a rare alignment of current income and long-term capital appreciation potential.

Anurag Mathur, Chief Executive of Savills India, said: 'India continues to strengthen its position as an attractive destination for global real estate investors.' He added that strong occupier demand, healthy rental growth and competitive yields were supporting investor confidence, while growing overseas interest reflected both current returns and long-term growth prospects.

Urbanisation as a Structural Driver

The report highlighted India's accelerating urbanisation as a structural demand driver. Around 36 per cent of India's population currently lives in cities, with approximately 12 million people being added to urban areas every year. This sustained demographic shift is expected to keep occupier demand robust for well-located commercial stock over the medium term. Notably, this places India among the fastest-urbanising large economies globally, adding depth to its long-term real estate investment thesis.

Asia-Pacific Trends: Data Centres Lead, Apartments Lag

Across Asia-Pacific, institutional concentration intensified — the 25 biggest buyers accounted for 47 per cent of regional deal volumes in the first half of 2026, up sharply from 34 per cent two years earlier. Among property segments, data centres recorded the strongest growth, with investment volumes surging 79 per cent year-on-year, followed by retail assets at 36 per cent. Offices, industrial properties and hotels each grew by approximately 22 per cent, while the apartment sector was the lone decliner, posting a 12 per cent fall in investment.

The divergence between data centres and apartments reflects a broader global reallocation toward digital infrastructure, a trend that India — with its expanding cloud and AI ecosystem — is well-positioned to capture in the quarters ahead.