India's real estate investment landscape remains resilient in H1 2025, attracting $3 billion

New Delhi, Sep 22 (IANS) India continues to stand out as a promising country within the Asia Pacific’s (APAC) real estate investment landscape, attracting significant capital inflows of $3.0 billion in the first half of 2025 (H1 2025), a report said on Monday.

Foreign investments stood at $1.6 billion, accounting for around 52 per cent of the investment in the sector during H1.

"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.

Around 48 per cent of the real estate investments during H1 2025 came from domestic investors.

"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.

With strong demand for high-quality spaces, overhauling and simplification of GST regulations and anticipation of elevated consumption levels in the upcoming festive season, institutional investors are confident about their India exposure.

Real estate investments in 2025 are likely to end on a high note, with core assets like residential and office continuing to demonstrate high traction, Yagnik said.

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

Within the office segment, institutional investors are increasingly acquiring developmental assets by partnering with local developers.

Investments in early-stage activities like land acquisition and construction have also picked up a significant pace in recent times.

Additionally, mixed-use and retail assets, too, saw a notable surge, together accounting for more than 30 per cent of the real estate investments in India during H1 2025, up from 7 per cent share during the corresponding period in 2024, the report said.

“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.

--IANS

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