India Emerges as a Global Real Estate Investment Powerhouse

A New Era of Global Confidence

India has firmly established itself as a top destination for cross-border real estate investment, securing the seventh position globally for land and development assets. This remarkable rise is underpinned by robust economic fundamentals, a maturing real estate market, and a relentless push for infrastructure development. As a result, India continues to attract global and regional capital, reinforcing its status as a key investment hub within Asia Pacific.

Strengthening Investment Climate

Favorable policy measures and sustained infrastructure investments have further enhanced India’s appeal to international investors. According to a recent report from Colliers, India’s real estate sector is not only resilient but also increasingly sophisticated, offering diverse opportunities for capital deployment. While Japan and Australia lead in standing asset investments, India stands out for its strength in land and development, consistently ranking among the top 10 global destinations.

Robust Growth and Investor Confidence

Institutional investments in Indian real estate surged to $1.3 billion in Q1 2025, marking a 31% year-on-year increase. This growth reflects unwavering investor confidence and the sector’s ability to adapt to evolving market dynamics. “Global and regional capital continues to flow steadily into India, particularly in land and development assets, supported by a maturing market and diverse capital deployment opportunities,” says Badal Yagnik, CEO of Colliers India.

Emerging Sectors and Expanding Horizons

The residential segment is witnessing heightened interest from global investors, while emerging sectors such as life sciences and data centers are also gaining traction. “Strong demand fundamentals, a robust supply pipeline, and expanding avenues such as development platforms and alternative investment structures will continue to present compelling opportunities in commercial as well as industrial and warehousing segments,” Yagnik adds.

Foreign Capital and Market Diversification

Foreign investors accounted for nearly 40% of total institutional inflows in Q1 2025, reaffirming their long-term commitment to Indian real estate. While office assets remain a primary focus, residential investments are on the rise, driven by rising demand, healthy returns, and a positive domestic outlook.

A Favourable Economic Backdrop

Consecutive repo rate cuts have brought the benchmark lending rate to 5.5%, the lowest in three years. “This diversification signals a maturing market where foreign capital is increasingly aligning with India’s evolving real estate landscape,” says Vimal Nadar, National Director & Head of Research at Colliers India. This favorable environment is expected to further boost investor sentiment and facilitate greater capital deployment, particularly in the residential sector, over the near to medium term.