According to a report by Knight Frank, India's commercial real estate market is witnessing unprecedented occupier demand, leading the Asia-Pacific region with an absorption of 86.4 million square feet in 2025. However, there is a stark contrast in funding availability, with only $2.3 billion in dry capital from alternative investment funds (AIFs) capable of meeting just 14% of this demand. This funding shortfall highlights a growing gap between occupier needs and institutional capital deployment. Over the past five years, the top eight office markets in India recorded 307.7 million square feet in transactions, significantly outpacing the 236.1 million square feet of supply delivered. The supply-to-demand ratio has declined to 0.63 times, indicating a tightening market. Compared to other APAC countries, India’s capital availability per square foot is notably low, which presents both challenges and investment opportunities. Experts advocate for structural reforms, including enhancing domestic capital pools and improving investor liquidity, to attract more institutional investment into the sector.