India's Real Estate Market: A Promising Long-Term Investment Destination
David Steinbach, global chief investment officer at Hines, discusses why India is a strategic focus for long-term real estate investment, highlighting its scale, stability, and strong domestic demand.
Real EstateInvestmentIndiaHinesLongtermReal Estate NewsSep 07, 2025
Despite the broader macroeconomic uncertainty, Hines continues to view private real estate as a high-conviction investment. The tangible nature of real estate and its historical resilience in higher-for-longer environments make it an appealing asset class. India stands out in this context due to its combination of scale, relative stability, and strong domestic demand, which are particularly valuable in today's de-globalising environment.
The global economy is undergoing structural shifts, such as supply chain reconfiguration and capital bifurcation. These shifts are influencing how and where capital is deployed, and they could provide tailwinds for India. One outcome of these shifts could be capital staying closer to home, meaning investors in Asia may be more inclined to invest within the region. This, paired with the fact that intra-regional trade in Asia is mature, could bode well for India in the long term.
India's rising consumption and urbanisation, supported by policy reforms, have laid a foundation for long-term real estate investment that appeals to many investors. Hines launched its India platform in 2006 and has since found that local execution and strong partnerships are essential for success. As global capital becomes more selective, India presents a market where fundamentals should support long-term deployment strategies.
India's private real estate market has shown resilience across various property types, including residential, office, industrial, and retail sectors. While construction activity has slowed in many global markets due to cost pressures and uncertainty, India has continued to show demand across all asset classes. Office rental yields in major cities have remained competitive, and the office sector has seen steady absorption.
Hines' research indicates that India just saw a record second quarter for total leasing in the office sector. Tech and manufacturing firms continue to expand their footprint or upgrade to newer, cutting-edge space, driven more by fundamentals than sentiment. This resilience and steady demand are strong indicators of the market's long-term potential.
Hines is focused on sectors and geographies where fundamentals are strong and long-term demand is evident. The office sector in India has been an outlier, with both domestic and international companies, as well as global capability centres and innovation hubs, contributing to sustained demand for high-quality space. The residential sector also presents a significant opportunity, given the lack of institutional-quality properties and the growing need for more housing, especially in dense urban areas.
In summary, India's real estate market offers a compelling long-term investment opportunity, driven by its scale, stability, and strong domestic demand. Hines' strategic focus on India reflects the company's confidence in the market's fundamentals and its potential for sustained growth.
Frequently Asked Questions
Why is India a strategic focus for Hines in the global investment climate?
India is a strategic focus for Hines due to its scale, relative stability, and strong domestic demand, which stand out in today's de-globalising environment. The country's rising consumption and urbanisation, supported by policy reforms, offer a foundation for long-term real estate investment.
How does India's private real estate market compare with global trends?
India's private real estate market has shown resilience across various property types, including living, office, industrial, and retail sectors. While construction activity has slowed in many global markets due to cost pressures and uncertainty, India has continued to show demand across all asset classes, especially in the office sector.
What sectors is Hines focused on in India?
Hines is focused on sectors where fundamentals are strong and long-term demand is evident. The office sector in India has been an outlier, with sustained demand from both domestic and international companies. The residential sector also presents a significant opportunity due to the lack of institutional-quality properties and the growing need for more housing.
What are the key trends in India's office real estate market?
India's office real estate market has seen record leasing in the second quarter, driven by tech and manufacturing firms expanding their footprint or upgrading to newer, cutting-edge space. Office rental yields in major cities have remained competitive, and the sector has shown steady absorption.
How does Hines ensure success in the Indian real estate market?
Hines ensures success in the Indian real estate market through local execution and strong partnerships. Since launching its India platform in 2006, the company has found that understanding local dynamics and forming strategic alliances are essential for long-term success.
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