India ranks 4th in Apac for real estate capital inflows in H1 2025: Report

India emerged as the 4th-largest destination for real estate capital in H1 2025, driven by strong foreign and domestic investments across residential, office, and industrial assets

India has emerged as the fourth-largest global destination for land and development capital in the first half of 2025, underscoring its growing prominence in Asia-Pacific’s (Apac) real estate landscape. According to Colliers’ latest "Investment Insights H1 2025" report, real estate investments across nine major Apac markets touched $71.9 billion despite a 6 per cent year-on-year (Y-o-Y) decline, with India continuing to attract strong foreign and domestic inflows.

 

“India continues to stand out as a promising country within the Apac’s real estate investment landscape. Foreign investments remained strong at $1.6 billion and accounted for around 52 per cent of the institutional investments in India during H1 2025,” said Badal Yagnik, Chief Executive Officer, Colliers India.

   

Domestic capital deployment surged 53 per cent Y-o-Y, making up nearly half of all real estate investments during the period. With core asset classes like residential and office showing robust traction, Colliers expects 2025 to end on a strong note, supported by stabilising interest rates and anticipated festive season consumption growth.   

 

PE land deals in H1 2025

 

India’s attractiveness for global and domestic investors was visible in key private equity land transactions during the first half of the year.

 

• Brookfield Group (MOON Holdings DIFC) invested $70.1 million to acquire land parcels for office development in Mumbai through Supreme Infrastructure India’s promoter group companies

• EcoBox Industrial Parks, backed by Alta Capital, deployed $48.3 million for industrial and warehousing land in Chennai.

• Golden Growth Fund acquired residential land worth $21.1 million in Delhi-NCR.

 

PE deals in developmental assets

 

Investments in developmental assets – from platform creation to construction – remained a key focus area in H1 2025.

 

• Welspun One WOLP Fund 2 invested $229.4 million in multi-city industrial and warehousing projects

• HDFC Capital Advisors Ltd & Eldeco Group jointly committed $175 million towards residential developments across multiple cities.

• CapitaLand India Trust (CLINT) partnered with Maia Estates for a $116 million office project in Bengaluru.

• Mitsubishi Estate Co Ltd and Birla Estates Pvt. Ltd launched a joint venture to invest $65 million in Bengaluru residential assets.

• PAG invested $65 million in residential projects with Ashwin Sheth Group in Mumbai.

 

“India’s prominence in the Asia Pacific region continues to grow, driven by strong demand traction across real estate asset classes,” said Vimal Nadar, National Director & Head of Research, Colliers India. “The second half of 2025 is poised to perform equally well, with rising investments in core segments like office and residential, along with traction in alternative assets such as data centres, senior living, and life sciences.”

 

Momentum likely to continue

 

Experts expect improved yield spreads and easing inflation to further strengthen capital inflows in H2 2025. As Lucy Mallick, International Capital Lead at Colliers, noted, “With inflation easing and stability in monetary policy across key markets, we expect capital flows to accelerate in the second half of 2025.”   

 

Top 10 global cross-border capital destinations

 

Global real estate investment stayed strong in the first half of 2025 despite slower economic growth. Colliers’ "Global Capital Flows" report shows the United States remained the top destination for cross-border capital into standing assets, attracting $24.3 billion over 12 months. The UK followed with $22.1 billion, while Australia ($13.8 billion) and Poland ($10.9 billion) performed strongly, with Poland beating its five-year average.

 

Germany, France, and Italy held steady, while the Netherlands saw a marginal decline. Spain and Japan completed the top ten, with Japan performing well above its five-year average, showing renewed investor interest.

 

Colliers highlighted a 5 per cent rise in Asia-Pacific cross-border flows compared to 2024, supported by large transactions in Singapore, China, and India.

 

CRE fundraising grows in Q2

 

Global CRE fundraising reached $111 billion in H1 2025, 85 per cent of 2024’s total. Debt and value-add strategies gained traction, while data centre fundraising surged.