India Ranks Among Top 10 Global Real Estate Investment Hubs: Q1 Inflows Reach $1.3 Billion
India continues to attract significant foreign investment in real estate, with institutional investments reaching $1.3 billion in Q1 2025, up 31% YoY. This growth underscores the sector's resilience and investor confidence in the country's evolving market.
Real EstateInvestmentIndiaGlobal MarketColliersReal Estate NewsJun 11, 2025
Colliers’ Global Capital Flows June 2025 report highlights that the Asia Pacific remains the most attractive region for land and development sites, with seven of the top 10 markets maintaining or improving their five-year average share of activity in Q1 this year. China and Singapore lead the list, followed by Australia, Malaysia, and India in fifth to seventh position. Hong Kong and Japan occupy the ninth and tenth spots. China continues to dominate the cross-border activity with an 80% market share. While the office segment remains the most sought-after in the Asia Pacific, the industrial and retail sectors are also gaining traction, despite multifamily being the top sector globally.
Institutional investments in Indian real estate stood at $1.3 billion in Q1 2025, marking a 31% YoY increase. This growth underscores the sector’s resilience and investor confidence. “Global and regional capital continues to flow steadily into India, particularly in land & development assets, supported by a maturing market and diverse capital deployment opportunities,” said Badal Yagnik, Chief Executive Officer, Colliers India.
The increasing participation of global investors in the residential segment, along with growing interest in emerging sectors such as life sciences and data centers, is expected to further bolster real estate investments in India. “At the same time, strong demand fundamentals, 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 & warehousing segments,” Yagnik added.
Vimal Nadar, National Director & Head of Research, Colliers India, noted that foreign investors accounted for nearly 40% 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,” Nadar explained.
The diversification of investments 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%, 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 global real estate fundraising rebounded strongly in 2025, with Q1 totals surpassing the past three years. An estimated $58 billion of new funds have been raised, representing almost half (44%) of 2024’s total. Over 60% of funds have exceeded targets in Q1, led by Blackstone, which contributed around 30% of activity via its largest European fund and latest debt strategy. Debt strategies attracted 33% of new capital raising in Q1, second only to opportunistic at 47%. In APAC, Japan is slowly raising rates as core inflation remains elevated, while South Korea, Australia, and Singapore have begun cutting rates.
Frequently Asked Questions
What is the current status of India in global real estate investment?
India ranks among the top 10 global cross-border investment destinations for land and development sites within the Asia Pacific region, driven by strong fundamentals and a maturing real estate market.
How much did institutional investments in Indian real estate reach in Q1 2025?
Institutional investments in Indian real estate reached $1.3 billion in Q1 2025, marking a 31% YoY increase.
What sectors are driving the growth in real estate investments in India?
The office segment remains the most sought-after, followed by the industrial and retail sectors. Emerging sectors such as life sciences and data centers are also gaining traction.
What role are foreign investors playing in India's real estate market?
Foreign investors accounted for nearly 40% of the total institutional inflows during Q1 2025, showing a strong and growing interest in Indian real estate, particularly in the residential segment.
How are repo rate cuts likely to impact the real estate market in India?
Consecutive repo rate cuts have brought the benchmark lending rate to 5.5%, the lowest in three years, which is expected to boost investor sentiment and facilitate greater capital deployment across real estate asset classes, particularly in the residential segment.
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