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India's real estate sector is demonstrating remarkable resilience and optimism, outshining peers in the Asia-Pacific region even as markets in Greater China and Australia face subdued leasing activity. The latest Asia-Pacific Market Sentiment Survey by CBRE highlighted that India's major cities continue to witness robust office leasing driven by tech, BFSI, and GCC demand. The Market Sentiment Index for the office sector surpassed 70%, reflecting the highest confidence levels recorded to date. Retail leasing has remained steady despite a minor dip, with retailers pursuing growth in high-footfall zones, reinforcing India's appeal as a stable investment hub.
India's commercial real estate sector continues to thrive, challenging the broader slowdown seen across Asia-Pacific (APAC) markets, particularly in regions like Greater China and Australia. While several APAC economies witnessed a cooling sentiment and muted leasing activity, India recorded a significant upswing in both market sentiment and transaction volumes, according to CBRE's latest Asia-Pacific Market Sentiment Survey. Advertisement
One of the standout trends has been the continued momentum in India's office segment. The country's Office Market Sentiment Index experienced a sharp rise between late 2024 and mid-2025, crossing the 70% threshold, the highest recorded level in India so far. This jump is attributed to sustained demand from key sectors such as information technology, banking and financial services, and Global Capability Centres (GCCs), which continue to expand despite global economic headwinds.
CBRE's Chairman and CEO for India, South-East Asia, the Middle East, and Africa, Anshuman Magazine, observed that the high sentiment index points to India's growing prominence as a resilient and secure investment destination. He explained that, unlike other APAC countries facing weaker demand, India's broad occupier base and tech-led growth have helped maintain vibrancy in its leasing market.
A notable contrast was seen in markets such as Korea and Singapore, where leasing appetite has diminished. However, India and Japan stood apart with expansion-driven activity rather than lease renewals, indicating deeper structural strength and occupier confidence in these economies.
Backed by CBRE's leasing data, India's office segment recorded a 5% year-on-year growth in gross office leasing, reaching 18 million sq. ft. during the first quarter of 2025 across nine key cities. This consistent performance further reinforces occupier confidence in India's long-term growth narrative, even amid global macroeconomic uncertainties.
The country's retail real estate sector also reflected similar resilience. Although there was a slight dip in overall leasing activity, Indian retailers have remained bullish. Their focus has shifted towards high-footfall, high-potential zones within key urban markets, signalling strong consumer sentiment and confidence in the domestic retail economy.
Ada Choi, Head of Research for APAC at CBRE, pointed out that while much of the region is still adapting to post-pandemic shifts in office use and occupancy, India is on a distinct growth trajectory. She said the country's commercial markets, particularly office spaces, are showing consistent demand and rental stability. This positions India well to attract global businesses looking to diversify or relocate their APAC operations.
Source: ANI
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