- India led Asia in cross-border real estate investment with $5.5 billion in nine months of 2026
- India's investment inflows were 50% higher than China's $3.7 billion in the same period
- Data centres drove $3.9 billion in investments, nearly twice that of traditional offices
India has topped the chart of Asia's leading destination for cross-border real estate investment list by attracting $5.5 billion in foreign capital during the first nine months of 2026, surpassing mainland China, which recorded inflows of $3.7 billion during the same period.
India's foreign real estate investment income was approximately 50% higher than China's, highlighting growing international investor confidence in the country's commercial property market, according to a report by global property consultancy Savills.
As per the report, India's robust performance was driven by growing occupier demand, solid rental growth, compelling investment yields and new commercial real estate opportunities, especially in data centres and development land.
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Data centres led investments at $3.9 billion, nearly double traditional offices. Rising demand from tech giants and hyperscalers accelerated digital infrastructure inflows, backed by major commitments from AirTrunk and EQT.
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During the first nine months of 2026, India recorded a 15% year-on-year increase in commercial real estate investment volumes. Total property transactions, encompassing land acquisitions, climbed 13% in dollar terms to reach $14.3 billion across the four quarters ending September.
Attractive returns continue to draw international investors to India. Grade A offices offer rental yields of roughly 7.75% to 8%, among the highest nominal returns in Asia-Pacific, while annual rental growth of 7% to 8% provides further upside.
Rapid urbanisation is another factor supporting long-term demand, creating demand for commercial infrastructure and property development. Approximately 36% of India's population lives in urban areas, with nearly 12 million people being added to cities every year raising the development projects.
Meanwhile, commercial real estate investment across the Asia-Pacific region approached $200 billion during the first nine months of 2026, registering 27% annual growth. Savills India CEO Anurag Mathur said strong occupier demand, rental growth and competitive yields were supporting investor confidence.
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