India Rises to 4th in Global Land & Development Capital: Colliers Report
Real estate investments in the Asia Pacific (APAC) region hit USD 71.9 billion in H1 2025, with India emerging as a key player, ranking fourth globally in land and development capital. The report highlights strong demand for office, residential, and retail assets.
Real EstateApacIndiaInvestmentDevelopmentReal EstateSep 22, 2025
Colliers also released its 'Global Capital Flows Report – September 2025,' which highlights the top 10 global sources and destinations for cross-border real estate capital. The report underscores Asia Pacific's growing influence, with Singapore, Japan, and Hong Kong among the top 10 global sources of capital in H1 2025. Japan and Australia are also among the top 10 global capital destinations, reflecting sustained investor confidence in APAC's economic fundamentals and asset quality. Notably, seven APAC markets, including India, feature prominently in the top 10 global destinations for land and development sites, with India ranking fourth.
India continues to stand out as a promising country within APAC’s real estate investment landscape. Foreign investments remained strong at USD 1.6 billion, accounting for around 52% of institutional investments in India during H1 2025. Interestingly, APAC investors accounted for over one-third of the foreign inflows into the country in the first half of the year, reiterating India’s strategic importance in cross-border capital flows. With strong demand for high-quality spaces, overhauling and simplification of GST regulations, and the anticipation of elevated consumption levels in the upcoming festive season, institutional investors are confident about their India exposure. Real estate investments in 2025 are likely to end on a high note, with core assets like residential and office continuing to demonstrate high traction, according to Badal Yagnik, Chief Executive Officer of Colliers India.
Of the total investments of USD 71.9 billion across the nine APAC markets, office assets remained the most sought-after, accounting for 36% of total investment volumes in H1 2025, with South Korea and Japan leading the charge. Retail investments saw a notable upswing, with investment rising 13% year-on-year, driven by investments in Australia, South Korea, and Mainland China. While industrial and logistics volumes softened at the APAC level, Taiwan stood out with a 46% YoY increase in the segment. Interestingly, real estate investments across the majority of the APAC markets were driven by domestic capital, while offshore investor interest remained relatively strong in India and Australia.
India witnessed strong capital inflows to the tune of USD 3.0 billion in H1 2025. While this was a 15% YoY decline, overall investor interest remained intact. Although foreign capital continued to dominate overall investments, domestic capital deployment gained significant traction, surging 53% YoY. Around 48% of the real estate investments during H1 2025 came from domestic investors.
Residential and office assets together drove over half of the investment inflows in H1 2025, with residential assets leading at USD 0.8 billion. Within the office segment, institutional investors are increasingly acquiring developmental assets by partnering with local developers. Investments in early-stage activities like land acquisition and construction have also picked up significant pace in recent times. Additionally, mixed-use and retail assets saw a notable surge, together accounting for more than 30% of the real estate investments in India during H1 2025, up from 7% share during the corresponding period in 2024.
India’s prominence in the Asia Pacific region continues to grow, driven by strong demand traction across real estate asset classes. Investor confidence is reflected in its recent rise to fourth place in terms of cross-border capital deployment in land and development sites, up from seventh position in the previous quarter. Real estate investments in India continue to benefit from favorable policies, improving yield spreads, and a growing appetite for asset diversification within the broader APAC region. The second half of 2025 is poised to perform equally well, with rising investments in both core segments like office and residential, along with traction in alternative assets such as data centers, senior living, and life sciences, according to Vimal Nadar, National Director & Head of Research at Colliers India.
Apart from India, the improving consumer sentiment and renewed investor interest in income-generating retail assets is particularly strong in central and secondary business districts of major APAC markets. Large-scale shopping centers are also experiencing renewed optimism, particularly in high-density locations where population growth is accelerating. The real estate sector in APAC continues to evolve with mixed-use developments integrating residential, entertainment, and lifestyle offerings, further enhancing resilience and long-term value.
The second half of 2025 is expected to bring renewed momentum across key APAC markets. With yield spreads improving, investor confidence is set to strengthen across asset classes, including alternative assets.
Frequently Asked Questions
What is the total real estate investment in the APAC region for H1 2025?
The total real estate investment in the APAC region for H1 2025 was USD 71.9 billion.
Which APAC country ranked fourth globally in land and development capital?
India ranked fourth globally in land and development capital in H1 2025.
What were the most sought-after asset classes in APAC during H1 2025?
Office assets were the most sought-after, accounting for 36% of total investment volumes in H1 2025, followed by residential and retail assets.
How much did India's real estate investments amount to in H1 2025?
India's real estate investments amounted to USD 3.0 billion in H1 2025.
What factors are driving the growth of real estate investments in India?
The growth of real estate investments in India is driven by strong demand for high-quality spaces, favorable policies, improving yield spreads, and a growing appetite for asset diversification.
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