NewKerala.com

India's Real Estate Boom: Record $14.3B Inflows Amid Global Investor Rush

India's real estate market is experiencing an unprecedented surge in capital investment. A new report reveals a record $14.3 billion flowed into the sector in 2025, marking a significant 25% increase from the previous year. The momentum was particularly strong in the last quarter, with a 30% year-on-year jump in investments. This boom is fueled by strong foreign interest and a maturing market focused on land, offices, and warehousing.

Key Points: India Real Estate Hits Record $14.3B Capital Inflows in 2025

  • Capital inflows surged 25% year-on-year to reach an unprecedented $14.3 billion in 2025
  • Land and development sites captured over 46% of total investments, leading all asset types
  • Institutional investors from Canada and the US dominated foreign capital, accounting for 78% of Q4 inflows
  • Mumbai, Bengaluru, and Delhi-NCR were the top cities, attracting over half of all investments
2 min read

Capital inflows in India's real estate sector at all-time high of $14.3 billion in 2025

India's real estate sector attracted a record $14.3 billion in 2025, a 25% YoY growth, driven by foreign and domestic investments in land and office assets.

Capital inflows in India's real estate sector at all-time high of $14.3 billion in 2025
"The depth of domestic capital, complemented by steady foreign participation, positions India well for continued momentum in 2026. - Anshuman Magazine, CBRE"

Mumbai, Jan 14

Capital inflows into the country's real estate sector reached an all-time high of $14.3 billion in calendar year 2025, registering a 25 per cent year-on-year growth, a report showed on Wednesday.

During the October-December (Q4) quarter, the sector attracted $3.3 billion worth of investments, recording a 30 per cent on-year increase, according to the report by CBRE South Asia Pvt. Ltd. Institutional investors from Canada and US accounted for 52 per cent and 26 per cent of the foreign capital inflows, respectively, during Q4.

Land/development sites dominated the investment landscape, attracting over 46 per cent of total inflows in 2025, followed by investments into built-up office assets (28 per cent).

For Q4 2025, land/development sites accounted for a share of over 45 per cent, followed by built-up office assets at 24 per cent, said the report.

A sustained dominance of land and development-led investments, alongside rising interest in office and warehousing assets, highlights a maturing market.

"Over 60 per cent of total inflows in site/land acquisitions in full year 2025 were deployed for residential and office developments, with other prominent categories being mixed-use and warehousing projects", said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.

The depth of domestic capital, complemented by steady foreign participation, positions India well for continued momentum in 2026, he added.

Last year, developers accounted for a 47 per cent share of total capital deployment, followed by institutional investors (30 per cent share).

In Q4 2025, developers accounted for 46 per cent of overall investments, followed by institutional investors (29 per cent) and REITs (14 per cent).

Office and residential assets continue to anchor the market, while activity expanded across mixed-use, warehousing, and data centre segments. The year also saw establishment of various investment and development platforms, underscoring growing interest in structured, long-term investment partnerships, said Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.

Among the major cities, Mumbai attracted the highest share (24 per cent) of capital inflows in 2025, followed by Bengaluru (20 per cent) and Delhi-NCR (11 per cent).

- IANS

Share this article:

Reader Comments

P
Priya S
Mumbai and Bengaluru leading as usual. While this creates jobs and infrastructure, it also widens the gap with tier-2 and tier-3 cities. Government policies should incentivize some of this investment to flow to developing cities to ensure balanced regional growth.
R
Rohit P
$14.3 billion is a huge number! 🚀 But as a potential home buyer in Delhi-NCR, all this investment just makes me worried about prices shooting up even further. When will the dream of owning a home become affordable for the average salaried person?
M
Michael C
Interesting data point from an investment perspective. The high percentage going into land/development sites indicates investors are betting on long-term value creation, not just quick returns. The maturity of the market with platforms and REITs is a very positive sign for stability.
S
Shreya B
Good to see warehousing and data centres getting attention. This is the backbone of e-commerce and digital India. Hope the environmental impact of such large-scale land acquisition is properly managed. Development shouldn't come at the cost of ecology.
K
Karthik V
Canadian and US funds dominating the foreign inflows... shows our policies are working to attract global capital. But we must ensure that the profits from these investments also circulate within the Indian economy and create sustainable local ecosystems, not just get repatriated.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50