Are Capital Inflows in India’s Real Estate Sector at an All-Time High of $14.3 Billion in 2025?
Synopsis
Key Takeaways
- Capital inflows in 2025 reached $14.3 billion.
- 25% year-on-year growth demonstrates strong market demand.
- Land and development sites dominate investment flows.
- Major contributions from Canadian and US institutional investors.
- Mumbai leads in capital inflows among Indian cities.
Mumbai, Jan 14 (NationPress) Capital inflows into India’s real estate sector soared to an unprecedented $14.3 billion in the calendar year 2025, marking a robust 25 percent growth compared to the previous year, according to a report released on Wednesday.
In the last quarter of the year (Q4), the sector attracted $3.3 billion in investments, reflecting a 30 percent increase year-on-year, as per CBRE South Asia Pvt. Ltd. Notably, institutional investors from Canada and the US contributed significantly, representing 52 percent and 26 percent of the foreign capital inflows during Q4.
The investment landscape was predominantly shaped by land and development sites, which captured over 46 percent of total inflows in 2025, followed by built-up office assets at 28 percent.
For Q4 2025, land and development sites comprised over 45 percent of investments, with built-up office assets at 24 percent, as highlighted in the report.
The sustained interest in land and development investments, coupled with growing demand for office and warehousing assets, indicates a maturing real estate market.
Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa for CBRE, noted that over 60 percent of total inflows in land acquisitions for 2025 were allocated to residential and office developments, with other significant areas being mixed-use and warehousing projects.
The depth of domestic capital, paired with consistent foreign participation, positions India favorably for ongoing growth into 2026, he added.
In the previous year, developers accounted for 47 percent of total capital deployment, with institutional investors holding a 30 percent share.
During Q4 2025, developers represented 46 percent of overall investments, followed by institutional investors at 29 percent and REITs at 14 percent.
Office and residential assets remain the backbone of the market, while activities have expanded across mixed-use, warehousing, and data center segments. The establishment of various investment and development platforms throughout the year underscores a growing interest in structured, long-term investment partnerships, remarked Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.
Among major cities, Mumbai attracted the largest share of capital inflows in 2025, accounting for 24 percent, followed by Bengaluru at 20 percent and Delhi-NCR at 11 percent.
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