India has secured its position as the fourth-largest destination for real estate and development capital in the Asia-Pacific (APAC) region in the first half of 2025. This development highlights India’s growing significance in the global real estate landscape.

According to the latest Investment Insights H1 2025 report from Colliers, real estate investments across nine major APAC markets totaled US$ 71.9 billion, despite a 6% year-over-year decline. India stood out by attracting significant foreign and domestic investments. Foreign inflows amounted to US$ 1.6 billion, representing around 52% of institutional capital, while domestic investments saw a notable 53% year-over-year increase, making up nearly half of the total capital influx.

Residential and office spaces have been particularly popular, with strong demand driven by stabilizing interest rates and expectations of increased consumption during the festive season. Key private equity land deals included Brookfield Group’s US$ 70.1 million investment in Mumbai, EcoBox Industrial Parks’ US$ 48.3 million commitment in Chennai, and Golden Growth Fund’s US$ 21.1 million acquisition in Delhi-NCR.

Development-focused investments also remained strong. The Welspun One WOLP Fund 2 committed US$ 229.4 million towards multi-city industrial and warehousing projects. Other notable deals include US$ 116 million by CapitaLand India Trust for an office project in Bengaluru and a joint venture between Mitsubishi Estate Co. and Birla Estates for residential assets in Bengaluru, valued at US$ 65 million. HDFC Capital Advisors and Eldeco Group together invested US$ 175 million in residential developments.

Looking ahead, Colliers anticipates that India will continue to attract significant real estate investment in the second half of 2025. This momentum is expected to be driven by rising demand in office spaces, residential properties, and emerging sectors such as data centres, senior living, and life sciences. With inflation easing and yield spreads improving, experts predict further acceleration in capital inflows, solidifying India’s position as a key player in the global real estate market.

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