India strengthens its position in global real estate investment as Asia-Pacific markets continue attracting institutional capital despite a temporary slowdown in transaction volumes.
Real estate investment activity across nine key Asia-Pacific (APAC) markets reached USD 71.9 billion during the first half of 2025, reflecting a 6% year-on-year decline, according to the Investment Insights H1 2025 report released by Colliers in September.
The report analyses investment trends across major regional markets including Australia, China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.
According to the findings, the modest decline in investment volumes was primarily driven by global trade uncertainties and broader economic pressures. However, analysts anticipate a rebound in market momentum during the second half of 2025, supported by stabilising interest rates and strengthening domestic capital flows.
India Gains Prominence in Global Capital Flows
Despite the regional slowdown, India has reinforced its position as a key global investment destination.
The country ranked fourth globally for cross-border capital targeting land and development sites, according to the Colliers Global Capital Flows Report – September 2025.
The report also highlights the growing significance of the Asia-Pacific region in global real estate investment. Notably, seven of the world’s top ten destinations for land and development investments are located in APAC, underlining the region’s rising influence in attracting institutional capital.
Investment Activity in India
In India, real estate investment volumes reached approximately USD 3 billion during H1 2025, representing a 15% year-on-year decline. Despite the dip, the market continued to attract strong investor interest from both domestic and international institutions.
Foreign investors contributed around USD 1.6 billion, accounting for nearly 52% of total institutional inflows during the period.
Meanwhile, domestic investment surged by 53% year-on-year, representing about 48% of the total capital share, signalling growing confidence among local investors.
Strong Foreign Interest in Indian Real Estate
Commenting on the market outlook, Badal Yagnik, Chief Executive Officer of Colliers India, emphasised that India continues to stand out among Asia-Pacific real estate investment destinations.
He noted that foreign investment remained robust at USD 1.6 billion, accounting for roughly 52% of institutional investments in the country during the first half of 2025. Investors from the Asia-Pacific region contributed more than one-third of these inflows, further highlighting India’s growing role in global capital flows.
Residential and Office Assets Dominate Investments
Within India, residential and office properties together accounted for more than half of all real estate investments in H1 2025.
Residential developments alone attracted approximately USD 0.8 billion in investment, reflecting continued demand in the housing sector.
At the same time, institutional investors increasingly partnered with local developers to acquire or develop office assets, indicating sustained long-term optimism about India’s commercial real estate market.
Rising Interest in Mixed-Use Developments
Another major trend highlighted in the report is the growing investor focus on mixed-use and retail developments.
Together, these segments accounted for over 30% of total investments in H1 2025, a sharp increase from just 7% during the same period in 2024.
This growth reflects the rising popularity of integrated urban developments that combine residential spaces, retail outlets, entertainment hubs, and lifestyle amenities within a single project. Such developments are increasingly attractive in high-density metropolitan cities, where efficient land utilisation and convenience are key priorities.
Positive Long-Term Outlook for India
According to Vimal Nadar, National Director and Head of Research at Colliers India, India’s position within the Asia-Pacific real estate market continues to strengthen.
He highlighted that consistent demand across multiple asset classes, along with supportive government policies, improving yield spreads, and rising investor interest in portfolio diversification, are supporting the long-term growth outlook of the country’s real estate sector.
Outlook for APAC Real Estate Investments
Looking ahead, Colliers expects investment activity across the Asia-Pacific region to recover in the second half of 2025.
The recovery is likely to be driven by moderating inflation, stable monetary policies, and more attractive yield spreads.
At the same time, investors are gradually expanding their focus beyond traditional sectors such as office and residential real estate. Emerging asset classes—including data centres, senior living communities, and life sciences properties—are gaining traction, signalling a broader diversification of real estate investment strategies across the region.
