Is India Emerging as One of the Most Resilient Real Estate Markets in Asia-Pacific?
Synopsis
Key Takeaways
- India's real estate market is strong and resilient.
- Major cities like Bengaluru and Mumbai are leading in office space.
- Office rentals are expected to grow significantly in 2026.
- Landlords are investing in modernizing older office buildings.
- Quality and flexibility will be key in office space demands.
New Delhi, Dec 21 (NationPress) India is establishing itself as one of the most resilient and opportunity-rich real estate markets in the Asia-Pacific region, despite the global economic uncertainties and slower growth affecting property markets in other areas, according to a new report released on Sunday.
In its Asia-Pacific Outlook 2026, Knight Frank highlighted that India continues to excel due to its robust domestic fundamentals, a vast and skilled workforce, and a real estate ecosystem that is progressively maturing.
While the Asia-Pacific economy is projected to slow down in 2026 due to shifting trade policies and cautious capital flows, India's property market is poised to thrive because of enduring demand and comparatively stable conditions.
The report emphasized that India enters 2026 with one of the most promising office market outlooks in the region.
Growth from global capability centres, consistent hiring in the technology sector, and strong confidence among occupiers have enabled India to achieve one of the highest leasing volumes in Asia-Pacific during 2025.
Major cities like Bengaluru, Mumbai, and the National Capital Region are at the forefront of this market, with office rental rates expected to increase between 7.5 per cent and 9 per cent year-on-year in 2026.
India's office market also reached a significant milestone in 2025, with Grade A office space across the top eight cities surpassing one billion square feet.
Commenting on the report's findings, Shishir Baijal, Chairman and Managing Director of Knight Frank India, mentioned that the nation remains a strategic growth hub for global businesses.
“India continues to be a standout strategic growth market. The country's affordability, skilled workforce, regulatory stability, and evolving workplace ecosystem enhance its attractiveness compared to other global centres,” he stated.
The report indicated that quality and flexibility will be crucial in defining India's office market in the upcoming year.
As many office buildings from the early 2000s approach functional obsolescence, landlords are investing more in upgrades such as enhanced air-conditioning systems, improved natural lighting, modern workplace technologies, and sustainability features.
Occupiers are increasingly willing to invest more in efficient, sustainable, and employee-friendly offices rather than merely large floor areas, according to the report.