India has solidified its position as a leading investment hub in the Asia-Pacific (APAC) region, ranking fourth in real estate capital inflows during the first half of 2025, according to Colliers’ Investment Insights H1 2025 report. The study revealed that overall investments across nine major APAC markets reached $71.9 billion, marking a 6% year-over-year decline, yet India stood out with robust foreign and domestic activity.
Foreign institutional inflows into India’s real estate market amounted to $1.6 billion, accounting for roughly 52% of total capital. Meanwhile, domestic investments showed impressive momentum, rising 53% compared to the same period last year and contributing nearly half of the overall inflows. This surge reflects growing investor confidence, particularly in core sectors such as residential housing and office properties, both buoyed by stabilizing interest rates and expectations of strong festive season demand.
Several landmark transactions underscored this trend. Brookfield Group injected $70.1 million into a Mumbai project, EcoBox Industrial Parks committed $48.3 million in Chennai, and Golden Growth Fund deployed $21.1 million in Delhi-NCR. Developmental investments also gained traction, with Welspun One WOLP Fund 2 allocating $229.4 million toward multi-city industrial and warehousing projects. Similarly, HDFC Capital Advisors partnered with Eldeco Group on a $175 million investment in residential ventures.
Other major deals included CapitaLand India Trust’s $116 million investment in a Bengaluru office development and a $65 million joint residential venture in Bengaluru by Mitsubishi Estate Co. and Birla Estates. Collectively, these deals highlight India’s growing appeal across diverse asset classes, from housing and offices to logistics and industrial parks.
Looking ahead, Colliers projects that India will maintain strong momentum through the second half of 2025, with increasing allocations toward not only residential and office sectors but also emerging alternatives like data centres, senior living facilities, and life sciences infrastructure. Analysts suggest that improving yield spreads and easing inflationary pressures will further accelerate inflows, reinforcing India’s standing as a critical global real estate destination.
