India's Real Estate Sector Sees 25% Surge in Capital Inflows to $14.3 Billion in 2025: CBRE

Capital inflows into India’s real estate sector surged by 25% year-on-year to an all-time high of $14.3 billion in 2025, according to a report by CBRE South Asia Pvt Ltd. This growth highlights sustained investor confidence across various asset classes.

The October-December quarter of 2025 witnessed equity investments of $3.3 billion, marking a nearly 30% rise compared to the same period the previous year. This momentum further cemented 2025 as one of the strongest years for real estate capital inflows in the country.

Land and development sites continued to dominate investor interest, accounting for over 46% of total inflows during 2025. Built-up office assets followed with a share of about 28%. In Q4 2025, land and development sites led investment activity with a share of more than 45%, while office assets accounted for around 24%. Together with warehousing assets, these sectors made up nearly 82% of total investment activity during the quarter.

Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa at CBRE, commented on the trend, stating that the continued dominance of land-led investments alongside growing interest in office and warehousing assets indicates a maturing market. He added, “Over 60% of total inflows in site / land acquisitions in 2025 were deployed for residential and office developments, with other prominent categories being mixed-use and warehousing projects. Strong domestic capital, supported by steady foreign participation, positions India well for sustained momentum in 2026.”

Developers remained the largest contributors to capital deployment during the year, accounting for about 47% of total investments, followed by institutional investors with a share of around 30%. In the December quarter, developers continued to lead with 46% of overall investments, while institutional investors accounted for nearly 29% and REITs for about 14%.

Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, highlighted that strong domestic demand and consistent foreign investor participation helped reinforce market resilience. “Office and residential assets continue to anchor the market, while activity expanded across mixed-use, warehousing, and data center segments,” he said. Notably, 2025 also saw the creation of several investment and development platforms, reflecting growing interest in structured, long-term partnerships.

Foreign capital inflows during Q4 2025 were led by institutional investors from Canada and the US, which accounted for 52% and 26%, respectively. In addition to direct equity investments, development and investment platforms worth around $440 million were established during the quarter across the office and residential segments.

City-wise, Mumbai attracted the largest share of capital inflows during 2025 at 24%, followed by Bengaluru at around 20% and Delhi-NCR at approximately 11%. However, the trend shifted in the December quarter, with Hyderabad emerging as the top destination with a 21% share, followed by Delhi-NCR at about 19% and Bengaluru at nearly 15%.

Looking ahead, CBRE expects greenfield activity to remain resilient across residential, office, mixed-use, warehousing, and data center developments. “Opportunistic strategies, particularly in office and mixed-use segments, are expected to gain prominence amidst the limited availability of core assets,” Anshuman Magazine said.

CBRE South Asia Pvt Ltd is a leading real estate services and investment firm, providing strategic advice and execution for property occupiers and owners. With a presence in over 100 countries, CBRE offers a comprehensive range of services including property management, leasing, valuation, and investment advisory.