Strong office demand, competitive rental yields and growing interest in data centres supported foreign investment during January–September 2026.
Highlights
- India attracted $5.5 billion in foreign real estate capital in January–September.
- Mainland China recorded $3.7 billion during the same period.
- India’s commercial real estate investment volumes increased 15% year-on-year.
- Grade A office rental yields stood at approximately 7.75–8%.
- Property transactions, including land, reached $14.3 billion over four quarters.
India attracted $5.5 billion in cross-border real estate investment during the first nine months of 2026, emerging as Asia’s leading destination for foreign property capital, according to a Savills report cited by NDTV Profit.
The inflows exceeded mainland China’s $3.7 billion during the corresponding period by approximately 49%, highlighting international investor interest in India’s commercial property market.
Strong demand from occupiers, rising rents and competitive investment yields supported the performance. The report also identified data centres and development land as areas creating fresh investment opportunities.
Office returns attract investors
India’s Grade A offices offered rental yields of approximately 7.75–8%, placing them among the highest nominal yields in the Asia-Pacific region, according to the report.
Annual rental growth of 7–8% added to the market’s appeal. Rental yield measures rental income relative to a property’s value, while rental growth reflects the increase in rents over time.
Savills India Chief Executive Officer Anurag Mathur said strong occupier demand, rental growth and competitive yields were supporting investor confidence.
Investment volumes increase
India recorded a 15% year-on-year increase in commercial real estate investment volumes during January–September 2026.
Separately, total property transactions, including land acquisitions, reached $14.3 billion across the four quarters ending September, up 13% in dollar terms.
These figures cover different periods and investment categories: the $5.5 billion represents foreign capital during nine months, while the $14.3 billion measures broader property transactions over four quarters.
The report also highlighted growing investor interest in digital infrastructure. Demand from technology companies and hyperscale operators supported data centre investment, with commitments from AirTrunk and EQT cited among the developments.
Urbanisation supports demand
Rapid urbanisation continued to support the longer-term need for commercial infrastructure and property development.
According to the report, approximately 36% of India’s population lives in urban areas, with nearly 12 million people added to cities each year. This expansion is creating demand for additional buildings, infrastructure and development projects.
India’s performance came alongside a broader recovery in regional investment activity. Commercial real estate investment across Asia-Pacific approached $200 billion during the first nine months of 2026, registering annual growth of 27%.
The findings point to sustained international interest in India’s income-generating commercial properties and newer infrastructure assets, supported by occupier demand and rental performance.
