India's Resilient Real Estate Market: A Bright Spot in Asia-Pacific
Mumbai: Even as global economic uncertainty, shifting trade policies, and a broader regional slowdown weigh on property markets in other countries, India has been recognized as one of Asia-Pacific’s most resilient and opportunity-rich real estate markets, according to Knight Frank’s Asia-Pacific Outlook 2026.
While the Asia-Pacific economy is expected to moderate in 2026, India stands out for its robust domestic fundamentals, deep talent base, and maturing real estate ecosystem, the report states.
India enters 2026 with one of the strongest office market outlooks in the region. Expansion by global capability centres, steady hiring in the technology sector, and a deep pool of skilled talent helped India record one of APAC’s highest leasing volumes in 2025. Cities like Bengaluru, Mumbai, and the National Capital Region (NCR) continue to outperform, with rental growth expected to range between 7.5 to 9 per cent year on year in 2026, placing India among the top regional performers. The national office landscape also crossed a major milestone in 2025, surpassing one billion sq ft of Grade A-led stock across the top eight cities.
According to Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, “We expect office leasing to reach a new peak in 2025, with gross leasing volumes crossing 80 million square feet. Further, this momentum is expected to continue into 2026, supported by a comparatively robust domestic business environment and resilient occupier sentiment.”
India’s cost competitiveness, with rentals still under $1 per sq ft per month in several major markets, strengthens its role as a strategic consolidation hub for multinational firms seeking operational depth and financial prudence.
India also continues to be the standout logistics performer in Asia-Pacific. While the broader Asia-Pacific region saw logistics rents flatten in 2025, India experienced sustained occupier expansion supported by manufacturing growth, resilient exports, and the widening adoption of China+1 strategies. Bengaluru, Mumbai, and NCR are projected to see around 5 per cent rental growth in 2026, outpacing most regional peers once again, the report highlights.
