ADVERTISEMENT
India is one of the only markets in APAC where the market sentiment index in all three sectors—office, retail, and industrial & logistics—is above the neutral 50% line. This shows "overall market resilience," the real estate consulting firm CBRE said in its latest Asia-Pacific Market Sentiment Survey.
Highlighting the Indian real estate market's sustained growth and resilience across key real estate segments, the survey says the country remains one of the top APAC office markets, alongside Japan and Singapore. Sectors like IT, BFSI, and Global Capability Centres (GCCs) continue to drive demand.
Besides, the office market sentiment index in India surged significantly from September 2024 to June 2025 and is now above the 70% threshold mark. This marks the highest sentiment recorded in India and signals continued momentum in office leasing among several APAC peers.
India’s sustained office market momentum and high sentiment index reflect its growing stature as a stable and resilient investment destination, says Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE. "As APAC peers see softening demand, India’s diversified occupier base, tech-driven demand, and long-term fundamentals are keeping leasing markets vibrant. The office sector remains the standout performer, backed by strategic expansions by GCCs and IT players. India’s consistent performance across office, retail, and industrial sectors positions it as a key pillar of stability in the Asia-Pacific real estate landscape,” says Magazine.
While much of the region is adjusting to post-pandemic occupancy trends, India is charting its growth path, says Ada Choi, Head of Research APAC, CBRE. "Its commercial markets, particularly offices, show strength in demand and rental stability. This resilience positions India well for continued expansion, particularly as global enterprises reassess and diversify their APAC footprints.”
The CBRE Survey shows "renewal versus relocation decisions" continued to dominate leasing activity in the office segment. However, expansionary demand persisted in India and Japan but softened in Korea and Singapore.
Total gross office leasing increased by 5% YoY to 18 million sq. ft. in Jan-Mar 2025 across nine cities, as per a recent office leasing report by CBRE.
Highlighting India's retail sector’s resilience compared to its counterparts in the APAC region, the survey shows that despite a slight decrease in leasing activity, the market maintains a strong sense of optimism. "Indian retailers are strategically expanding, focusing on high-traffic, high-potential locations within major urban centres."
The approach underscores sustained consumer demand and reflects strong confidence in the long-term prospects of the country's retail landscape, even as other markets experience consolidation and slower leasing cycles.
The survey points out that as certain markets within Greater China and Australia experience a softening in sentiment and more subdued leasing activity, India's office sector stands out as a remarkably resilient and high-performing market. This positive trajectory is fundamentally fueled by robust occupier confidence and consistent, healthy rental growth across its key cities.
Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.