Is India Emerging as One of the Most Resilient Real Estate Markets in Asia-Pacific?

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Is India Emerging as One of the Most Resilient Real Estate Markets in Asia-Pacific?

Synopsis

Discover why India is becoming a beacon of resilience in the Asia-Pacific real estate market, even amidst global economic challenges. With strong fundamentals and a growing office market, find out how India is poised for growth in 2026.

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.

Point of View

It is clear that India is strategically positioned for growth in the real estate sector. With its burgeoning office market and strong domestic fundamentals, the nation is attracting global attention. As we move into 2026, it is essential for stakeholders to align with these growth trends, ensuring that India remains a competitive player on the global stage.
NationPress
21/12/2025

Frequently Asked Questions

What factors contribute to India's resilience in real estate?
India's resilience can be attributed to strong domestic fundamentals, a skilled workforce, and a maturing real estate ecosystem.
Which cities in India are leading in the office market?
Bengaluru, Mumbai, and the National Capital Region are among the top cities leading the office market in India.
What is the expected growth in office rentals for 2026?
Office rentals in India are expected to grow between 7.5 percent and 9 percent year-on-year in 2026.
How has India's office market performed in 2025?
India's office market surpassed one billion square feet of Grade A office stock across the top eight cities in 2025.
What trends are shaping the future of India's office market?
Quality and flexibility are set to define India's office market, with a focus on sustainable and employee-friendly spaces.
Nation Press