India's Strategic Rise in APAC Real Estate Investments—4th Globally in Land & Development
Real estate investments across the top 9 APAC markets reached USD 71.9 billion in H1 2025, marking a 6% YoY decline. Despite this, domestic capital continues to drive investments, with India and Australia seeing strong foreign investor interest.
Real EstateApacIndiaInvestmentsSustainabilityReal EstateSep 22, 2025
Sustainability is becoming a key focus in the real estate sector. Colliers' 'Global Capital Flows Report – September 2025' highlights 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 for standing assets, reflecting sustained investor confidence in APAC's economic fundamentals and asset quality. Notably, seven APAC markets, including India, are among the top 10 global destinations for land and development sites, with India standing fourth.
India continues to stand out as a promising country within Asia Pacific'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. APAC investors accounted for over one-third of the foreign inflows into the country, underscoring India's strategic importance in cross-border capital flows. With strong demand for high-quality spaces, simplification of GST regulations, and anticipation of elevated consumption levels during the 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.
Of the total investments of USD 71.9 billion across the nine APAC markets, office assets were 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, 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. 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. Foreign capital continued to dominate overall investments, but 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.
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.
Lucy Mallick, International Capital Lead at Colliers, stated, 'Investment volumes across global capital markets remained subdued in the first half of 2025. Despite this, Asia Pacific is showing signs of strategic resilience, with sectoral shifts and fundraising momentum that reflect evolving investor priorities. With inflation easing and stability in monetary policy across key markets, we expect capital flows to accelerate in the second half of 2025.' 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 top 9 APAC markets in H1 2025?
The total real estate investment in the top 9 APAC markets in H1 2025 reached USD 71.9 billion.
How has domestic capital influenced real estate investments in APAC?
Domestic capital continues to drive investments across most APAC markets, while foreign investor appetite remains strong, particularly in India and Australia.
What is India's rank among global destinations for land and development sites?
India stands fourth among the top 10 global destinations for land and development sites.
What are the key sectors driving real estate investments in India?
Residential and office assets together drove over half of the investment inflows in India in H1 2025, with residential assets leading at USD 0.8 billion.
What is the expected performance of the real estate market in the second half of 2025?
The second half of 2025 is expected to bring renewed momentum across key APAC markets, with rising investments in core segments like office and residential, and traction in alternative assets.
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