Real Estate Capital Inflows Surge 48% to $3.8 Billion in Q3 2025, Driven by Land and Development Sites
The real estate sector witnessed a significant 48% increase in equity investments to $3.8 billion in Q3 2025, primarily driven by investments in land and development sites. Key cities like Mumbai, Pune, and Bengaluru saw substantial capital inflows.
Real EstateCapital InflowsLand DevelopmentInvestmentMumbaiReal Estate PuneOct 10, 2025
In the first nine months of 2025, equity investments increased by 14% Y-o-Y to $10.2 billion from $8.9 billion in the same period last year. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, highlighted the sector's resilience and depth, stating, “India’s real estate sector is entering a phase of accelerated growth, driven by continued investor confidence. In the upcoming quarters, greenfield developments are likely to continue witnessing a robust momentum, with a healthy spread across residential, office, mixed-use, data centres, and I&L sectors.”
The investment landscape is becoming more diversified, with capital deployment into both built-up and development assets. Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India, noted, “In addition to global institutional investors, Indian sponsors accounted for a significant part of the total inflows. India’s ability to combine strong domestic capital with global institutional participation will remain a key differentiator in 2026 and beyond.”
Asset-wise, the growth was largely driven by sustained interest in land or development sites, along with robust activity in built-up asset acquisitions. Together, built-up office and retail assets accounted for more than 90% of the total capital inflows during Jul-Sep ‘25. Among major cities, Mumbai attracted the highest investments, accounting for 32% of the total, followed by Pune (18%) and Bengaluru (16%).
In the category of investors, developers remained the primary drivers of capital deployment, contributing 45% of the total equity inflows, followed by institutional investors with a 33% share. CBRE’s outlook for 2025 suggests that investment activity is expected to close on a strong note, primarily fueled by capital deployment into built-up office and retail assets. Greenfield developments are also likely to continue witnessing robust momentum in the upcoming quarters across residential, mixed-use, data centres, and I&L sectors. For the office sector, the limited availability of investible core assets for acquisition indicates that opportunistic bets are likely to continue gaining traction.
Frequently Asked Questions
What is the total equity investment in real estate for Q3 2025?
The total equity investment in real estate for Q3 2025 was $3.8 billion, a 48% increase from $2.6 billion in the year-ago period.
Which cities attracted the highest investments in Q3 2025?
Mumbai attracted the highest investments, accounting for 32% of the total, followed by Pune (18%) and Bengaluru (16%).
What types of assets drove the growth in real estate investments?
The growth was largely driven by sustained interest in land or development sites, along with robust activity in built-up office and retail assets.
Who are the primary investors in the real estate sector?
Developers remained the primary drivers of capital deployment, contributing 45% of the total equity inflows, followed by institutional investors with a 33% share.
What is the outlook for the real estate sector in 2025?
CBRE’s outlook for 2025 suggests that investment activity is expected to close on a strong note, primarily fueled by capital deployment into built-up office and retail assets, with robust momentum in greenfield developments across various sectors.
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