India Maintains Top 10 Status in Global Real Estate Investment
India remains a leading destination for cross-border investments in land and development projects, driven by strong fundamentals and a maturing real estate market. Favourable policies and infrastructure development are further enhancing its appeal to global investors.
Real Estate InvestmentCrossborder InvestmentsIndiaLand DevelopmentGlobal InvestorsReal Estate NewsJun 11, 2025
While Japan and Australia lead the rankings for standing assets, India holds a prominent position at the seventh place in the top 10 global cross-border capital destinations for land and development sites. Institutional investments in Indian real estate stood at a strong $1.3 billion in Q1 2025, marking a 31 per cent year-on-year increase. This underscores the sector’s resilience and investor confidence.
Badal Yagnik, Chief Executive Officer of Colliers India, noted, “Global and regional capital continues to flow steadily into India, particularly in land and development assets, supported by a maturing market and diverse capital deployment opportunities.” The report further highlights that increasing global investor participation in the residential segment, along with a growing appetite for emerging segments such as life sciences and data centres, will further strengthen real estate investment in India.
At the same time, strong demand fundamentals, a robust supply pipeline, and expanding avenues such as development platforms and alternative investment structures will continue to present compelling opportunities in commercial as well as industrial and warehousing segments, Yagnik added. Foreign investors accounted for nearly 40 per cent of the total institutional inflows during Q1 2025, reaffirming their long-term interest in Indian real estate.
While office assets remain a key focus for foreign investors, residential investments are gaining ground, driven by rising demand, healthy returns, and a positive domestic outlook. Vimal Nadar, National Director and Head of Research at Colliers India, stated, “This diversification signals a maturing market where foreign capital is increasingly aligning with India’s evolving real estate landscape. Looking ahead, consecutive repo rate cuts have brought the benchmark lending rate to 5.5 per cent, the lowest in three years.”
This is likely to further boost investor sentiment and facilitate greater capital deployment across real estate asset classes, particularly the residential segment in the near to medium term, Nadar added. The maturing real estate market, combined with favourable policies and infrastructure development, positions India as a compelling investment destination for both domestic and international investors.
In summary, India’s strong fundamentals, maturing real estate market, and supportive government policies are driving increased cross-border investments in land and development projects. The country’s appeal to global investors is expected to continue, with positive trends in residential and emerging segments further enhancing its investment landscape.
Frequently Asked Questions
Why is India a top 10 global investment destination for land and development projects?
India is a top 10 global investment destination for land and development projects due to its strong fundamentals, maturing real estate market, and supportive government policies. The country also benefits from ongoing infrastructure development and a robust supply pipeline.
What sectors are attracting foreign investors in India's real estate market?
Foreign investors are particularly interested in office assets, residential properties, and emerging segments such as life sciences and data centres. These sectors offer robust demand fundamentals and healthy returns.
How has institutional investment in Indian real estate performed recently?
Institutional investments in Indian real estate stood at $1.3 billion in Q1 2025, marking a 31 per cent year-on-year increase. This reflects the sector's resilience and strong investor confidence.
What role do government policies play in enhancing India's real estate investment climate?
Government policies, including favourable measures and continued infrastructure development, play a crucial role in enhancing India's real estate investment climate. These policies help attract and retain global and regional capital.
What impact do repo rate cuts have on real estate investment in India?
Repo rate cuts, such as the recent reduction to 5.5 per cent, are likely to boost investor sentiment and facilitate greater capital deployment across real estate asset classes, particularly in the residential segment.
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