India's Real Estate: A Top Global Investment Destination for Land and Development Projects
India has maintained its position as one of the top 10 global cross-border investment destinations for land and development projects, with institutional investments in real estate reaching $1.3 billion in Q1 2025, a 31% increase year-on-year.
Real EstateInvestmentIndiaLand DevelopmentGlobal CapitalReal EstateJun 11, 2025
Favourable policy measures and ongoing infrastructure development are further enhancing the investment climate and reinforcing India's appeal to global and regional capital. While Japan and Australia lead the pack for standing assets, India holds the seventh place in the top 10 global cross-border capital destinations for land and development sites.
Institutional investments in Indian real estate reached a robust $1.3 billion in Q1 2025, marking a 31% increase year-on-year. This growth underscores the sector’s resilience and investor confidence. '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,' said Badal Yagnik, Chief Executive Officer of Colliers India.
The increasing participation of global investors in the residential segment, coupled with a growing interest in emerging sectors like life sciences and data centres, is further strengthening 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% 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.
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%, the lowest in three years,' said Vimal Nadar, National Director and Head of Research at Colliers India. This reduction is likely to further boost investor sentiment and facilitate greater capital deployment across real estate asset classes, particularly in the residential segment in the near to medium term.
Colliers is a leading global real estate services company with a strong presence in India. The company provides a wide range of services, including property management, investment sales, and advisory services, helping clients navigate the dynamic real estate market.
Frequently Asked Questions
Why is India a top destination for global real estate investment?
India is a top destination for global real estate investment due to its strong fundamentals, maturing real estate market, and favorable policy measures. The country also benefits from ongoing infrastructure development and a growing interest in land and development assets.
What sectors are attracting the most foreign investment in Indian real estate?
Residential and office assets are the primary sectors attracting foreign investment in Indian real estate. However, there is also growing interest in emerging sectors like life sciences and data centers.
How has institutional investment in Indian real estate performed in Q1 2025?
Institutional investments in Indian real estate reached $1.3 billion in Q1 2025, marking a 31% increase year-on-year. This growth highlights the sector’s resilience and investor confidence.
What role do policy measures play in attracting real estate investments?
Favourable policy measures and ongoing infrastructure development are crucial in attracting real estate investments. These measures enhance the investment climate and make India an appealing destination for global and regional capital.
What is the impact of repo rate cuts on the real estate market?
Repo rate cuts have brought the benchmark lending rate to 5.5%, the lowest in three years. This reduction is likely to boost investor sentiment and facilitate greater capital deployment across real estate asset classes, particularly in the residential segment.
Related News Articles
Century Real Estate Targets Rs 21 Billion in Sales
Century Real Estate aims to achieve sales of Rs 21 billion
Mumbai-Based Keystone Realtors Sees 22% Surge in Sales Bookings to Rs 611 Crore in Q1 FY25
Keystone Realtors Ltd has reported a 22% increase in sales bookings to Rs 611 crore during the April-June period of this fiscal, driven by strong housing demand.
Shaping the Future of Real Estate: Sushma Group's Building Business Summit
Industry leaders unite to discuss future trends and strategic insights in real estate
UPPCB Clarifies: Carpentry and Steel Binding Allowed Under GRAP Stages 3 and 4
The UPPCB has clarified that less-polluting construction activities, such as steel binding and carpentry, are permitted under GRAP stages 3 and 4, following concerns raised by CREDAI about misinterpretation of CAQM guidelines.
NoBroker Launches Property Carnival for Homebuyers in Pune
NoBroker, India's leading proptech unicorn, has announced the much-anticipated Property Carnival for homebuyers in Pune. This event brings together various real estate developers, brokers, and financial institutions under one roof, offering a range of pro
Peripheral Areas Outshine Mumbai’s Prime Locations in Residential Property Price Growth
The demand for affordable housing in peripheral areas, coupled with improved connectivity to Mumbai, is driving a significant rise in property prices. As commuting becomes more convenient, more buyers are opting for these areas over the city's prime locat