Key Points

The report highlighted that investors continued to show strong interest in these asset classes even as the broader property market maintained healthy momentum.

It stated "Investment activity for 2025 is expected to close on a strong note, primarily fuelled by capital deployment into built-up office and retail assets".

The report data highlighted that the real estate sector in the country recorded a notable surge in investment activity during the third quarter (July-September) of 2025 compared to the same period a year ago.

It shared that the capital flows in Q3 2025 rose by about 48 per cent year-on-year and 9 per cent quarter-on-quarter to reach USD 3.8 billion. During the first nine months (9M) of 2025, total capital flows stood at USD 10.2 billion, marking a 14 per cent rise compared to the previous year.

The report also mentioned that the greenfield developments are also expected to witness robust activity in the coming quarters. These investments are likely to be well distributed across residential, mixed-use, data centre, and industrial and logistics (I&L) sectors.

For the office segment, the report noted that the limited availability of investible core assets for acquisition indicates that opportunistic bets would continue to gain traction among investors seeking higher returns.

Land and development sites, along with built-up office and retail assets, collectively attracted more than 90 per cent of the overall investment flows in Q3 2025.

The report further revealed that domestic investors, predominantly developers, dominated overall investment inflows during the quarter, accounting for over 90 per cent of the total.

Among foreign investors, US-based players accounted for around 85 per cent of the overseas capital inflows, followed by a Canadian institutional investor with roughly 15 per cent.

Nearly 72 per cent of the total capital inflows in site and land acquisitions were directed toward residential and office developments. The remaining share was committed to data centres, mixed-use developments, and warehousing projects.

According to CBRE, these trends indicate strong investor confidence in India's real estate market. The continued flow of capital into both core and development assets, supported by sustained demand in key sectors, is expected to keep investment momentum strong through the end of 2025.

- ANI