India continues to be a top location in the Asia Pacific (APAC) real estate investment scene, attracting significant capital flows of $3.0 billion in the first half of 2025 (H1 2025), a report issued on Monday stated.
Foreign investors poured in $1.6 billion, representing about 52 per cent of the whole sector investment in the period.
"While the investment declined Year-on-Year (YoY), overall investor interest remained intact. The foreign capital continued to dominate overall investments; meanwhile, domestic capital deployment gained significant traction, surging 53 per cent YoY," Colliers said in a report.
Domestic investors contributed about 48 per cent of real estate investments during H1 2025.
"India continues to stand out as a promising country within the Asia Pacific’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.
"Interestingly, APAC investors accounted for over one-third of the foreign inflows into the country in the first half of the year, reiterating India’s strategic importance in cross-border capital flows," he added.
Institutional investors are positive about India's market, driven by strong demand for high-quality spaces, ease of GST rules, and anticipation of high consumption in the coming festive season.
Yagnik pointed out that 2025 is set to be a resilient year for real estate, with prime assets such as residential and office buildings continuing to command strong investment.
During H1 2025, residential and office assets combined accounted for more than half of all inflows, led by residential assets at $0.8 billion. Within offices, institutional investors are increasingly participating in development projects through joint ventures with domestic developers.
Investment in early-stage activities like land purchase and building has also picked up significant steam.
Mixed-use and retail properties also experienced a significant boost, with the two combined accounting for more than 30 per cent of real estate investment during H1 2025, from a mere 7 per cent during the same time in 2024, the report added.
“India’s prominence in the Asia Pacific region continues to grow, driven by strong demand traction across real estate asset classes. Investor confidence is reflected in its recent rise to fourth place in terms of cross-border capital deployment in land and development sites, up from seventh position in the previous quarter,” said Vimal Nadar, National Director & Head of Research, Colliers India.
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