Record Capital Inflows in India's Real Estate Sector Reach $14.3 Billion in 2025
Capital inflows into India's real estate sector reached an all-time high of $14.3 billion in the calendar year 2025, marking a 25% year-on-year growth, according to a report by CBRE South Asia Pvt. Ltd. This robust growth underscores the sector's continued attractiveness to both domestic and foreign investors.
During the October-December (Q4) quarter, the sector attracted $3.3 billion in investments, a 30% increase from the previous year. Institutional investors from Canada and the United States accounted for 52% and 26% of the foreign capital inflows, respectively, during Q4. This highlights the significant role of international capital in driving the market.
Land and development sites dominated the investment landscape, attracting over 46% of total inflows in 2025. Built-up office assets followed, accounting for 28% of the investments. In Q4 2025, land and development sites accounted for over 45% of the investments, while built-up office assets took up 24%.
The sustained dominance of land and development-led investments, alongside rising interest in office and warehousing assets, signals a maturing market. Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East & Africa, noted that over 60% of total inflows in site/land acquisitions in 2025 were deployed for residential and office developments. Other prominent categories included mixed-use and warehousing projects.
The depth of domestic capital, complemented by steady foreign participation, positions India well for continued momentum in 2026. Developers accounted for 47% of total capital deployment in 2025, followed by institutional investors with a 30% share. In Q4 2025, developers accounted for 46% of overall investments, followed by institutional investors (29%) and REITs (14%).
Office and residential assets continue to anchor the market, while activity has expanded into mixed-use, warehousing, and data center segments. The year also saw the establishment of various investment and development platforms, underscoring growing interest in structured, long-term investment partnerships. Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, highlighted this trend.
Among the major cities, Mumbai attracted the highest share of capital inflows in 2025, accounting for 24% of the total. Bengaluru followed with 20%, and Delhi-NCR with 11%. This geographic distribution indicates a balanced growth across key economic hubs in India.
The real estate sector in India is poised for further growth, driven by favorable government policies, robust economic fundamentals, and increasing investor confidence. The establishment of investment platforms and the diversification of investment categories are expected to play a crucial role in sustaining this momentum.
