Have India's real estate equity inflows surged by 48% in Q3 2025?
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Synopsis
Equity investments in India's real estate sector saw a staggering surge of 48% in Q3 2025. This unprecedented growth highlights the robustness of the market and its potential for future investments. The data reveals key insights into investor behavior and regional trends that could shape the real estate landscape in India for years to come.
Key Takeaways
- Equity investments surged by 48% in Q3 2025.
- Total equity investments rose to $10.2 billion in the first nine months of 2025.
- Developers are the primary source of capital deployment.
- Mumbai remains the top destination for real estate investments.
- Future growth expected in greenfield developments across various sectors.
New Delhi, Oct 10 (NationPress) Equity investments in India’s real estate sector have experienced a remarkable 48% increase year-on-year, reaching $3.8 billion during the July-September period (Q3), as reported on Friday. This surge in inflows was predominantly driven by capital investments in land or development sites as well as built-up office and retail assets, according to a report by the prestigious real estate consulting firm CBRE South Asia.
In the first three quarters of 2025, equity investments grew by 14% year-on-year to $10.2 billion, up from $8.9 billion during the same timeframe last year.
The report emphasized that over 90% of the total capital inflows during Q3 2025 were attributed to land or development sites and built-up office and retail assets.
In terms of investor categories, developers were the main contributors to capital deployment, accounting for 45% of total equity inflows, followed by institutional investors holding a 33% share.
According to CBRE, Mumbai captured the highest share of investments at 32%, followed by Pune with approximately 18% and Bengaluru nearing 16%.
Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE, stated that the strong inflow of domestic capital reflects the sector’s resilience and depth.
“In the forthcoming quarters, greenfield developments are expected to maintain strong momentum, with a healthy distribution across residential, office, mixed-use, data centers, and infrastructure & logistics (I&L) sectors,” he added.
Alongside global institutional investors, Indian sponsors have also played a significant role in the total inflows.
“India’s capability to blend robust domestic capital with global institutional participation will remain a crucial differentiator in 2026 and beyond,” commented Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.
CBRE anticipates a vigorous conclusion to investment activity in 2025, driven by capital allocations to built-up office and retail assets.
For the office sector, the limited availability of investible core assets indicates that opportunistic investments are likely to gain momentum, the report noted.
Point of View
It is vital to recognize the significance of the 48% rise in equity investments in India's real estate sector. This growth reflects the sector's resilience and allure to both domestic and international investors, indicating a promising trajectory for the future. It is crucial to continue monitoring these trends for informed decision-making in economic policy and investment strategies.
NationPress
10/10/2025
Frequently Asked Questions
What was the percentage increase in equity investments in Q3 2025?
Equity investments in India's real estate sector increased by 48% in Q3 2025.
What were the main contributors to the growth in equity investments?
The growth was primarily driven by capital deployments in land or development sites and built-up office and retail assets.
Which city attracted the highest equity investments?
Mumbai attracted the highest share of investments at 32%.
What is the outlook for investment activity in 2025?
CBRE forecasts a strong finish for investment activity in 2025, particularly in built-up office and retail assets.
Who are the main investors in the real estate sector?
Developers contributed 45% of the total equity inflows, followed by institutional investors with a 33% share.
