India's Real Estate Market Outperforms Other Emerging Economies: What’s in it for Indian Investors?

The global housing market appears to be heading towards opposite directions, where, while a number of economies are facing downward pressure on their real residential property prices, India's Real Estate Market has displayed some degree of resilience. According to figures released by the Bank for International Settlements (BIS), real residential property prices globally fell by 1.2% year-on-year in the first quarter of 2026. The real residential property prices of the emerging market economies fell by 2%, while India was one of those that registered positive real price growth. The Chinese economy continued to face the challenge of falling real residential property prices.

This particular contrast is important for Indian investors to realize because it reveals an important difference between India's housing market and some other major economies. However, there is a need for proper interpretation of the figures. What is important to remember is that India's superior performance has been seen in terms of its real residential property-price performance only.

So, what is behind this resilience?

India's Real Estate Market Shows Relative Resilience

The latest BIS data provides an important snapshot of the global housing environment. In Q1 2026, real global house prices declined 1.2% year-on-year. Advanced economies recorded a 0.2% decline, while emerging market economies recorded a 2% decline in real terms. The decline among emerging economies was particularly influenced by Asian markets.

The performance of the Indian real estate market stands out compared to the general trend. According to BIS data, real residential property prices in India kept on increasing while China showed a significant decline. The US also saw a decrease in real residential property prices.

The longer-term picture also provides useful context. BIS notes that global house prices have increased in real terms since the Global Financial Crisis, with India, Türkiye and the US among the economies recording notable increases. At the same time, real residential property prices remain below their post-crisis levels in China and some other markets.

For Indian investors, this suggests that domestic housing demand has remained comparatively resilient despite global uncertainty.

Why is the Indian property market resilient?

There are several structural elements contributing to the resilience of the Indian property market.

The country has seen significant economic growth, along with urbanization and development of infrastructure and employment hubs. Such structural elements generate demand for residential and commercial properties.

The depth of the residential market has been evident in India. The India Residential Market Monitor by CBRE reported over 270,000 sales and over 270,000 launches of properties in the year 2025 in India. CBRE said that the market was structurally mature, with supply balanced against demand.

It is an important metric for investors since the high level of sales along with the significant amount of new supply, implies that developers do not increase supply regardless of buyers' demand. However, investors should still consider particular locations since the national-level metrics may not represent the situation in every city or micro-market.

India's Economic Growth Supports Housing Demand

There is also the general Indian economy, which serves as another base of support for the real estate market.

Based on the Ministry of Statistics and Programme Implementation (MoSPI), real GDP in India is expected to grow at 7.7% in FY 2025-26.

Economic growth may affect real estate in different ways, such as employment, household incomes, firm expansion, and urbanization. As economic activities continue to expand, the demand for real estate, including housing, will also grow.

It must be understood though, that GDP growth should not be automatically associated with the rise in property values. After all, real estate is still a localized industry. Interest rates, cost of living, cost of construction, inventory levels, and employment are some of the factors that may affect the market.

Investors interested in investing in the property market in India should thus take economic growth as one supportive aspect but not the only one.

China and the US Present a Different Picture

The contrast with China is particularly significant.

The residential real estate market in China has been going through a protracted adjustment process, with BIS data showing ongoing weakness in real residential real estate prices in the country. Real house prices in China have stayed below their post-Global Financial Crisis levels, while India has registered real price gains in its residential property market over a longer period.

The situation is quite different in the case of the US.

Although being one of the biggest and most developed housing markets in the world, residential property prices in the US have fallen year-on-year in Q1 2026, as shown by the BIS data.

However, it would be wrong to assume that Indian real estate will necessarily provide higher investment returns than real estate in America and China.

The proper assessment is that the residential real estate market in India currently has better price momentum than some other major markets.

Institutional Investors Are Increasing Their India Exposure

A further notable measure of the development of India’s Real Estate Market is institutional investments.

According to Colliers, institutional investments in Indian real estate amounted to around US$4.5 billion in H1 2026, reflecting an increase of 50% from H1 2025 and marking the highest first-half investments in six years.

Domestic investors were among the key contributors. The capital allocation rose 80% year-on-year to US$2.6 billion, making up almost 57% of total institutional investment in H1 2026, while foreign investments came in at approximately US$1.9 billion.

The rising involvement of institutions is important because institutional investors base their decisions on criteria such as yield generation capacity and growth potential of assets.

The trend suggests that Indian real estate is becoming increasingly institutionalised and diversified.

Commercial Real Estate Adds Another Opportunity

The Indian property market is not limited to residential housing.

Commercial real estate continues to attract substantial institutional capital. Colliers reported that the office segment attracted around US$1.9 billion during H1 2026, accounting for more than 40% of total institutional real estate investment during the period.

This is significant considering that the Indian commercial real estate sector is driven by expansion of businesses and corporate demand, with Global Capability Centres being one of those drivers.

For investors, it provides several avenues to invest in real estate assets, including residential, commercial, and even REITs.

What Does This Mean for Property Investment in India?

The current data creates a positive backdrop for property investment in India, but investors should remain selective.

The Location Will Continue to Matter

Infrastructure, employment, and connectivity will be some of the key factors impacting property demand. Investors should look at future road plans, metro connectivity, airports, commercial centers and employment centers before investing.

Developer Quality Matters

Investors should look at the history of the developer, approvals received, construction underway, registration with RERA, and past delivery. No matter how strong the national markets, problems related to the specific property may arise.

Valuation Needs to be Analyzed Thoroughly

In order to avoid paying a high premium on the property, investors should look at other properties located in the same micro market and then compare valuations.

Rental Demand Should Be Considered

If the investor is buying property for rental income generation, he/she should look at rental rates prevailing, demand, vacancy levels and distance from employment centers/infrastructure.

Valuation Should Be Examined Carefully

Real estate is less liquid compared to other financial instruments. Therefore, investors need to evaluate their investment horizon, cost of capital, and liquidity considerations.

Rental Demand Should Be Studied

The involvement of institutions in the Indian real estate market is another indication that alternative opportunities are emerging, which go beyond traditional residential properties.

Investors Should Think Long Term

Real estate is generally less liquid than listed financial assets. Investors should therefore consider their investment horizon, financing costs, and liquidity requirements before committing capital.

The Bigger Picture for Indian Investors

The current data suggests a positive outlook for India's Real Estate Market, especially when one considers how the residential performance of the market compares to other economies.

According to data from BIS, real global residential property prices fell 1.2% year-on-year in Q1 2026, with real emerging market prices falling 2%. India held up relatively well in comparison with China, where there was a fall in residential property prices, and the US, where there was also a fall in real prices.

Domestically speaking, CBRE reported over 270,000 residential sales and 270,000 residential launches in 2025, while Colliers recorded $4.5 billion in institutional real estate investments during H1 2026.

All of this together creates a picture of an economy that is supported by economic growth, domestic demand, institutional involvement, and diversification.

For investors, however, the bottom line is not necessarily that all properties in India are going to have excellent performance. The positive performance of India relative to the rest of the world creates a good context for making property investments in India part of your long-term investment strategy.

The most crucial strategy should be about fundamentals, including location, infrastructure, reputation of developers, pricing, rental demand, quality of the projects, and duration of investments.

Though India's Real Estate Market is likely outperforming some major markets in terms of residential real-price appreciation, the decision-making process will still rely on proper research and analysis, not market performance. As the Indian economy and its cities grow and develop further, investors who are more focused on quality real estate assets and demand will have the chance to participate in the opportunity of India.