India Mid-year Market Outlook FY2027

India’s FY2027 macroeconomic outlook has evolved against a more challenging global backdrop than initially anticipated, with geopolitical tensions and disruptions in the Strait of Hormuz heightening concerns over energy security, supply chains, and inflation. Despite these external headwinds, domestic economic activity remains resilient. Growth momentum continues to be firm, supported by the Reserve Bank of India (RBI) maintaining the benchmark repo rate within a neutral policy stance. Additionally, the central bank's marginal downward revision of its FY2027 inflation forecast in August 2026 suggests that price pressures, while present, are expected to remain manageable over the forecast period.

Given these dynamics, CBRE Research’s India Mid-Year Market Outlook FY2027 report, launched at the CII Real Estate Summit 2026 in Mumbai in September, reassesses our March projections. It evaluates domestic strengths alongside an evolving trade landscape, where milestones such as the India-UK CETA and relatively favourable U.S. tariff positioning provide near-term visibility, even as long-term stability hinges on ongoing negotiations and potential policy shifts.

Crucially, underpinned by robust fundamentals, the Indian real estate sector has demonstrated notable strength amid these external pressures. Sustained occupier demand, calibrated supply additions, and strong domestic capital deployment continue to drive momentum across office, residential, retail, logistics, and data centre sectors. This mid-year review evaluates the H1 2026 performance and presents updated sector-level forecasts through March 2027.

What you'll find in this report

• Office: Record-high leasing activity, sustained GCC expansion, and evolving AI-driven workplace strategies reinforce occupier demand.
• Capital Markets: Capital deployment remains robust, led by domestic investors, with built-up office assets and development opportunities attracting significant investment interest.
• Retail: Leasing momentum remains resilient, supported by retailer expansion, experience-led formats, and continued demand from fashion, F&B, jewellery, and entertainment brands.
• Industrial & Logistics: Healthy leasing activity continues despite global volatility, driven by 3PL, e-commerce, and engineering & manufacturing occupiers.
• Residential: The market is transitioning towards a more sustainable growth phase, with high-end housing continuing to anchor demand and developers adopting a calibrated supply approach.
• Data Centres: Capacity expansion remains on track as digitalisation, AI-led demand, and strong capital commitments support sector growth.

Want the full picture? Click Download to access CBRE Research's complete India Mid-Year Market Outlook FY2027.