India Leads Asia-Pacific in Commercial Real Estate Resilience
India has emerged as the most resilient commercial real estate market in the Asia-Pacific region, with sustained growth across the office, retail, and industrial & logistics segments, according to Coldwell Banker Richard Ellis (CBRE)'s latest Asia Pacific Market Sentiment Survey. Unlike Greater China and Australia, where market sentiment has softened, India’s commercial property market continues to exhibit strong occupier confidence, driven by demand from technology, financial services, and continued investments by Global Capability Centres (GCCs).
India’s Office Market Sentiment Index crossed the 70% mark between September 2024 and June 2025, the highest among all Asia-Pacific (APAC) markets. Gross office leasing rose 5% YoY in Q1 FY25, reaching 18 million square feet across nine cities, led by Bengaluru, Hyderabad, Delhi National Capital Region (NCR), and Mumbai. Expansion-led leasing by Information Technology (IT) and GCC occupiers continues to thrive, contrasting with a slowdown in Korea and Singapore.
India’s retail segment also reflects resilience, with retailers strategically expanding in high-yield metro locations, avoiding the widespread closures seen elsewhere in APAC. Meanwhile, the industrial & logistics sector continues to show strong sentiment, keeping India above the 50% neutral line across all three core sectors—office, retail, and logistics, making it the only country in the region with such broad-based optimism.
Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE Mr. Anshuman Magazine attributed the growth to India’s diversified occupier base, infrastructure expansion, and favourable landlord dynamics. Head of Research for APAC at CBRE, Ms. Ada Choi, added that India’s distinctive post-pandemic trajectory and stable rental trends make it a prime destination for global enterprises diversifying their portfolios in Asia-Pacific.
The robust performance of India's commercial real estate market is not just a reflection of local economic conditions but also a testament to the country's growing appeal as a global business hub. The expansion of infrastructure, particularly in major cities, has significantly enhanced the attractiveness of these locations for both domestic and international investors. The government's focus on improving the business environment, coupled with a young and skilled workforce, has further bolstered the market's resilience.
In the office segment, the technology and financial services sectors have been the primary drivers of demand. The rise of Global Capability Centres (GCCs) has played a crucial role in this growth, as these centres bring in significant investment and job opportunities. Cities like Bengaluru and Hyderabad have become key hubs for these activities, attracting a wide range of companies looking to tap into India's talent pool.
The retail sector has also shown remarkable resilience, with retailers focusing on high-yield metro locations. This strategic approach has helped them navigate the challenges posed by the pandemic and maintain a strong presence in the market. The industrial & logistics sector, on the other hand, has benefited from the increasing demand for e-commerce and supply chain solutions, driving growth in this segment.
Overall, India's commercial real estate market is poised for continued growth, driven by a combination of strong demand, favorable economic conditions, and strategic investments. The market's resilience and broad-based optimism make it an attractive destination for both domestic and international investors, solidifying its position as a leading market in the Asia-Pacific region.
