Real Estate Investments Surge by 48% YoY to $3.8 Billion in Q3 FY25: CBRE Report
Equity investments in the real estate sector witnessed a significant 48% year-over-year (YoY) increase to $3.8 billion in the third quarter of FY25, according to a report by CBRE South Asia.
Real EstateInvestmentsCbreEquityQ3 2025Real EstateOct 13, 2025
During Q3 2025, the inflows were primarily driven by capital deployment into land/development sites and built-up office and retail assets. In the first nine months of 2025 (9M 2025), equity investments increased by around 14% YoY to $10.2 billion from $8.9 billion in the same period last year.
Anshuman Magazine, chairman and CEO of India, South-East Asia, Middle East, and Africa at CBRE, commented, “The healthy inflow of domestic capital demonstrates the sector’s resilience and depth. 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.”
Gaurav Kumar, managing director of capital markets and land at CBRE India, added, “The investment landscape is becoming more diversified, with capital deployment into both built-up and development assets. 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/development sites, along with robust activity in built-up asset acquisitions. Together, land/development sites and built-up office and retail assets accounted for more than 90% of the total capital inflows during Q3 2025.
Among major cities, Mumbai attracted the highest investments, accounting for a share of around 32%, followed by Pune (~18%) and Bengaluru (~16%). In the category of investors, developers remained the primary drivers of capital deployment, contributing approximately 45% of the total equity inflows, followed by institutional investors with a 33% share.
The report indicates that investment activity in 2025 is expected to close on a strong note, primarily fueled by capital deployment into built-up office and retail assets. Greenfield developments are 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 suggests that opportunistic bets are likely to continue gaining traction.
Frequently Asked Questions
What is the percentage increase in real estate equity investments in Q3 2025 compared to Q3 2024?
The equity investments in the real estate sector increased by 48% year-over-year (YoY) in Q3 2025 compared to Q3 2024.
What were the primary drivers of the increased capital inflows in Q3 2025?
The primary drivers of the increased capital inflows in Q3 2025 were capital deployment into land/development sites and built-up office and retail assets.
Which major city attracted the highest real estate investments in Q3 2025?
Mumbai attracted the highest real estate investments in Q3 2025, accounting for a share of around 32%.
What sectors are expected to see robust momentum in the upcoming quarters?
Greenfield developments are expected to continue witnessing robust momentum in the upcoming quarters across residential, mixed-use, data centres, and I&L sectors.
What is the role of domestic capital in the real estate sector's growth?
The healthy inflow of domestic capital demonstrates the sector’s resilience and depth, contributing significantly to the accelerated growth of India’s real estate sector.
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