India ranks fourth in Asia-Pacific (APAC) for real estate capital inflows in H1 2025: Report

India has emerged as the fourth-largest global destination for real estate and development capital in H1 2025, highlighting its growing prominence in the Asia-Pacific (APAC) region. According to Colliers’ "Investment Insights H1 2025" report, real estate investments across nine major APAC markets touched US$ 71.9 billion, despite a 6% YoY decline, with India attracting strong foreign and domestic inflows. Foreign investments in India stood at US$ 1.6 billion, accounting for around 52% of institutional capital. In comparison, domestic investments surged 53% YoY, comprising nearly half of total inflows. Core asset classes such as residential and office witnessed robust traction, supported by stabilising interest rates and expected festive season consumption growth. Key private equity land deals included Brookfield Group’s US$ 70.1 million investment in Mumbai, EcoBox Industrial Parks’ US$ 48.3 million deployment in Chennai, and Golden Growth Fund’s US$ 21.1 million acquisition in Delhi-NCR.
Investment in developmental assets remained strong, with Welspun One WOLP Fund 2 committing US$ 229.4 million to multi-city industrial and warehousing projects. In comparison, HDFC Capital Advisors and Eldeco Group invested US$ 175 million in residential developments. Other notable deals included CapitaLand India Trust’s US$ 116 million office project in Bengaluru and Mitsubishi Estate Co. and Birla Estates’ US$ 65 million joint venture in Bengaluru residential assets. Colliers expects India to maintain momentum in H2 2025, driven by rising investments in office, residential, and alternative assets such as data centres, senior living, and life sciences. Improved yield spreads and easing inflation are likely to accelerate capital inflows further, consolidating India’s position as a key global real estate destination.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.