India has firmly established itself as the fourth-largest global destination for land and development capital during the first half of 2025, underscoring its expanding role in the Asia-Pacific (APAC) real estate market.
Colliers’ latest ‘Investment Insights H1 2025’ report reveals that real estate investments across nine major APAC markets reached $71.9 billion, despite a 6 per cent year-on-year decline.
India continues to attract robust foreign and domestic capital inflows, reflecting confidence in the nation’s real estate potential.
Badal Yagnik, Chief Executive Officer of Colliers India, stated, “India continues to stand out as a promising country within APAC’s real estate investment landscape. Foreign investments remained strong at $1.6 billion, accounting for about 52 per cent of institutional investments in India during H1 2025.”
Domestic capital deployment surged 53 per cent year-on-year, making up nearly half of all real estate investments in the period.
With core sectors such as residential and office assets showing solid traction, Colliers anticipates 2025 will end on a high note, bolstered by stabilising interest rates and expected festive season consumption growth.
Private Equity Land Deals & Developmental Asset Investments
India’s attractiveness to global and domestic investors was evident in key private equity land transactions in the first half of 2025:
- Brookfield Group (MOON Holdings DIFC) invested $70.1 million in office development land parcels in Mumbai through Supreme Infrastructure India’s promoter group companies.
- EcoBox Industrial Parks, supported by Alta Capital, deployed $48.3 million for industrial and warehousing land in Chennai.
- Golden Growth Fund acquired residential land worth $21.1 million in Delhi-NCR.
Investment in developmental assets—from platform creation to construction—also remained a priority:
- Welspun One WOLP Fund 2 invested $229.4 million in multi-city industrial and warehousing projects.
- HDFC Capital Advisors Ltd and Eldeco Group jointly committed $175 million to residential developments across several cities.
- CapitaLand India Trust partnered with Maia Estates for a $116 million office project in Bengaluru.
- Mitsubishi Estate Co Ltd and Birla Estates Pvt Ltd formed a joint venture to invest $65 million in Bengaluru residential assets.
- PAG invested $65 million in residential projects with Ashwin Sheth Group in Mumbai.
“India’s prominence in the Asia-Pacific region continues to grow, driven by strong demand across real estate asset classes,” said Vimal Nadar, National Director & Head of Research, Colliers India.
He noted that the second half of 2025 is poised to perform equally well, with rising investments in core segments such as office and residential, along with traction in alternative assets like data centres, senior living, and life sciences.
Experts expect improved yield spreads and easing inflation to further bolster capital inflows in the latter half of 2025.
Lucy Mallick, International Capital Lead at Colliers, observed, “With inflation easing and stability in monetary policy across key markets, we expect capital flows to accelerate in the second half of 2025.”
Global Real Estate Investment Trends
Despite slower economic growth globally, real estate investment remained resilient in H1 2025.
The United States topped the list for cross-border capital, attracting $24.3 billion over 12 months, followed by the UK, Australia, and Poland.
Asia-Pacific cross-border flows rose by 5 per cent compared to 2024, driven by significant transactions in Singapore, China, and India.
Global commercial real estate (CRE) fundraising also grew, reaching $111 billion in H1 2025—85 per cent of the previous year’s total.
Debt and value-add strategies gained momentum, while fundraising for data centres surged.
Future prospects for India’s real estate sector remain bright, supported by strong domestic demand, foreign investment, and growing interest in diverse asset classes.
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