Is India’s Real Estate Investment Landscape Thriving in H1 2025?

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Is India’s Real Estate Investment Landscape Thriving in H1 2025?

Synopsis

India's real estate market is thriving, attracting $3 billion in H1 2025, with strong foreign and domestic investments. As demand for quality spaces grows, investors are optimistic about the future, indicating a robust landscape for real estate in Asia Pacific.

Key Takeaways

  • India attracted $3 billion in real estate investments in H1 2025.
  • Foreign investments accounted for 52 percent of total investments.
  • Domestic capital saw a surge of 53 percent YoY.
  • Residential and office assets led investments, with $0.8 billion in residential.
  • Mixed-use and retail assets rose to over 30 percent of investments.

New Delhi, Sep 22 (NationPress) India continues to emerge as a prominent player in the Asia Pacific’s (APAC) real estate investment scene, drawing in an impressive $3.0 billion in capital during the first half of 2025 (H1 2025), according to a report released on Monday.

Foreign investments totaled $1.6 billion, making up approximately 52 percent of the sector’s total investments in H1.

"Despite a Year-on-Year (YoY) decline in investment, the overall interest from investors remained robust. Foreign capital continued to lead overall investments; concurrently, domestic capital showed remarkable growth, increasing by 53 percent YoY," stated Colliers in the report.

Domestic investors contributed about 48 percent of the real estate investments in H1 2025.

"India’s stature persists as a prominent country in the APAC real estate investment landscape. Foreign investment remains strong, with $1.6 billion accounting for around 52 percent of institutional investments in India during H1 2025," remarked Badal Yagnik, Chief Executive Officer of Colliers India.

"Notably, APAC investors comprised more than one-third of the foreign inflows into the country in the first half of the year, underscoring India’s strategic significance in cross-border capital flows," he added.

With a solid demand for high-quality spaces, the overhaul and simplification of GST regulations, along with expectations of heightened consumption during the upcoming festive season, institutional investors are optimistic about their investments in India.

Real estate investments in 2025 are poised to conclude on a high note, with core assets like residential and office properties maintaining strong traction, Yagnik indicated.

Residential and office assets collectively accounted for over half of the investment inflows in H1 2025, with residential assets leading at $0.8 billion.

In the office sector, institutional investors are increasingly acquiring developmental assets by collaborating with local developers.

Investments in early-stage activities such as land acquisition and construction have also witnessed a significant uptick recently.

Furthermore, mixed-use and retail assets have experienced a notable rise, together representing more than 30 percent of real estate investments in India during H1 2025, up from just 7 percent during the same period in 2024, the report revealed.

“India’s significance in the APAC region continues to escalate, driven by robust demand across various real estate asset classes. This confidence is reflected in its recent ascent to fourth place for cross-border capital deployment in land and development sites, improving from seventh place in the last quarter,” stated Vimal Nadar, National Director & Head of Research at Colliers India.

Point of View

The continuous investment inflow into India's real estate sector signifies the country's growing importance in the Asia Pacific region. With robust domestic and foreign participation, India's resilience in the face of global economic challenges showcases its potential as a prime destination for real estate investment.
NationPress
22/09/2025

Frequently Asked Questions

What is the total real estate investment in India for H1 2025?
India attracted a total of $3 billion in real estate investments during the first half of 2025.
How much of the investment came from foreign investors?
Foreign investors contributed $1.6 billion, which is approximately 52 percent of the total investments.
What are the key sectors driving investment growth?
Residential and office assets are the main drivers, with residential assets accounting for $0.8 billion.
How is domestic investment changing in the real estate sector?
Domestic capital deployment surged by 53 percent year-on-year, indicating strong local investor confidence.
What trends are emerging in the Indian real estate market?
There is a notable rise in mixed-use and retail asset investments, along with increased focus on developmental properties.
Nation Press