India's Real Estate Investment Market Stays Robust, Attracts $3 Billion in H1 2025
New Delhi: India's real estate sector continues to attract significant investment, with $3 billion flowing in during the first half of 2025, driven by both foreign and domestic capital.
Real EstateInvestmentIndiaForeign CapitalDomestic CapitalReal EstateSep 22, 2025
While the investment declined Year-on-Year (YoY), overall investor interest remained intact. The foreign capital continued to dominate overall investments; meanwhile, domestic capital deployment gained significant traction, surging 53 per cent YoY, according to a report by Colliers.
Around 48 per cent of the real estate investments during H1 2025 came from domestic investors. “India continues to stand out as a promising country within the Asia Pacific’s real estate investment landscape. Foreign investments remained strong at $1.6 billion and accounted for around 52 per cent of the institutional investments in India during H1 2025,” said Badal Yagnik, Chief Executive Officer, Colliers India.
“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,” he added. With strong demand for high-quality spaces, overhauling and simplification of GST regulations, and 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, Yagnik said. Residential and office assets together drove over half of the investment inflows in H1 2025, with residential assets leading at $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 a significant pace in recent times.
Additionally, mixed-use and retail assets, too, saw a notable surge, together accounting for more than 30 per cent of the real estate investments in India during H1 2025, up from 7 per cent share during the corresponding period in 2024, the report said.
“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,” said Vimal Nadar, National Director & Head of Research, Colliers India.
Frequently Asked Questions
What is the total investment in India's real estate sector during H1 2025?
The total investment in India's real estate sector during H1 2025 is $3 billion.
What percentage of the investment in H1 2025 came from foreign investors?
Around 52 per cent of the investment in H1 2025 came from foreign investors.
How much did domestic capital deployment increase Year-on-Year (YoY)?
Domestic capital deployment increased by 53 per cent Year-on-Year (YoY).
Which asset classes drove the majority of investment inflows in H1 2025?
Residential and office assets together drove over half of the investment inflows in H1 2025, with residential assets leading at $0.8 billion.
What is the significance of mixed-use and retail assets in H1 2025?
Mixed-use and retail assets saw a notable surge, together accounting for more than 30 per cent of the real estate investments in India during H1 2025, up from 7 per cent share during the corresponding period in 2024.
Related News Articles
Sheth Realty Invests Rs 150 Crore in Luxury Residential Project in Mumbai's Sion
Sheth Realty
Mumbai Metro 11 Construction: MMRCL Denies Start of Work
Mumbai Metro Rail Corporation (MMRCL) denies media reports of starting construction work on Metro 11, citing pending finalization of DPR.
Can I Claim HRA Exemption for Rent Paid to Parents?
This comprehensive guide will help you understand the eligibility criteria and steps to claim HRA exemption if you are paying rent to your parents for the property you are staying in.
Why Kanakapura Road in Bengaluru is a Promising Real Estate Investment
Kanakapura Road, located close to south Bengaluru's IT corridor, is rapidly becoming a preferred location for real estate investments. Affordability, Grade A builders, and ongoing infrastructure projects are making it an attractive option for both buyers
Niranjan Hiranandani Group Makes a Grand Entry into Pune Real Estate Market with 105-Acre Township in Hinjewadi
The Niranjan Hiranandani Group has made a significant move by entering the Pune real estate market with a massive 105-acre township project in Hinjewadi. This strategic joint development marks a major milestone in the group's expansion plans.
Bhutani Group Co-Operates with ED in Money Laundering and Fraud Investigation
New Delhi, the real estate firm Bhutani Infra is fully cooperating with the Enforcement Directorate (ED) in its ongoing investigation into alleged money laundering and fraud. The company has stated its commitment to legal compliance and transparency.