India real estate inflows hit record $14.3 bn in 2025, up 25%

Capital inflows into India's real estate sector hit a record USD 14.3 billion in 2025, a 25% jump. The final quarter saw USD 3.3 billion in investments, with domestic investors leading. Land and development sites were the most popular assets.

Capital inflows into India's real estate sector surged 25 per cent in 2025 to reach an all-time high of USD 14.3 billion, according to the latest 'India Market Monitor Q4 2025 - Investments' report by CBRE South Asia Pvt. Ltd.

The sector attracted USD 3.3 billion worth of investments during the October-December quarter alone, recording a 30 per cent year-on-year increase.

Investment Breakdown by Asset and Investor Type

Domestic investors dominated the overall investment inflows in the final quarter of the year, accounting for an 80 per cent share of the total capital. Land and development sites remained the primary focus for investors, attracting over 46 per cent of total inflows throughout 2025, followed by built-up office assets at approximately 28 per cent. In the fourth quarter, land acquisitions maintained a 45 per cent share, while office assets accounted for 24 per cent.

Developers led capital deployment for the year with a 47 per cent share, followed by institutional investors at 30 per cent. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said that a sustained dominance of land and development-led investments, alongside rising interest in office and warehousing assets, highlights a maturing market. "Over 60% 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", he said, adding "The depth of domestic capital, complemented by steady foreign participation, positions India well for continued momentum in 2026."

City-Wise Investment Distribution

Mumbai attracted the highest share of capital inflows in 2025 at 24 per cent, followed by Bengaluru at 20 per cent and Delhi-NCR at 11 per cent. However, the fourth quarter saw a shift in regional activity as Hyderabad received the highest share at 21 per cent, followed by Delhi-NCR at 19 per cent and Bengaluru at 15 per cent.

Foreign Capital and Market Resilience

Foreign capital during the final quarter was driven largely by institutional investors from Canada and the US, who accounted for 52 per cent and 26 per cent of foreign inflows, respectively.

Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India, said "Strong local demand and continued foreign investor participation have reinforced market resilience, with an all-time high in investments in the country in 2025. Office and residential assets continue to anchor the market, while activity expanded across mixed-use, warehousing, and data center segments. The year also saw establishment of various investment and development platforms, underscoring growing interest in structured, long-term investment partnerships."

Future Outlook and Investment Strategies

Looking ahead, Magazine said that greenfield activity is expected to remain resilient, with notable traction likely across residential, office, mixed-use, as well as warehousing and data centre developments. He further stated that "opportunistic strategies--particularly in office and mixed-use segments--are expected to gain prominence amidst the limited availability of core assets".

Investment and development platforms worth approximately USD 440 million were also established in the fourth quarter, highlighting an interest in structured, long-term partnerships. (ANI)

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