Capital inflows into India’s real estate sector touched a historic high of $14.3 billion in calendar year 2025, marking a 25 per cent increase over the previous year, according to a report released on Wednesday by CBRE South Asia Pvt. Ltd. The figures reflect sustained investor confidence in the sector amid growing domestic participation and steady foreign interest.
Investment momentum remained strong in the final quarter of the year, with the October–December period attracting $3.3 billion in capital inflows. This represented a 30 per cent year-on-year rise for the quarter, underscoring continued activity despite global economic uncertainties.
Foreign institutional investors played a significant role in Q4 inflows. Investors from Canada accounted for 52 per cent of overseas capital during the quarter, while those from the United States contributed 26 per cent, the report noted. The data points to North America continuing as a key source of foreign investment into India’s property markets.
Land and development sites emerged as the dominant investment category in 2025, accounting for more than 46 per cent of total capital inflows. Built-up office assets followed with a 28 per cent share. A similar trend was observed in the fourth quarter, where land and development assets attracted over 45 per cent of investments, while office assets accounted for 24 per cent.
The report noted that the continued preference for land and development-led investments, along with rising interest in office and warehousing assets, signals the gradual maturation of India’s real estate investment landscape. More than 60 per cent of the total capital deployed in land and site acquisitions during 2025 was directed towards residential and office developments. Mixed-use projects and warehousing also emerged as notable investment destinations.
According to Anshuman Magazine, Chairman and CEO for India, South-East Asia, Middle East and Africa at CBRE, the depth of domestic capital, supported by consistent foreign participation, has positioned the Indian real estate sector for sustained growth. He said this investment pattern reflects confidence in long-term fundamentals and is expected to support continued momentum into 2026.
Developers remained the largest contributors to capital deployment during the year, accounting for 47 per cent of total investments in 2025. Institutional investors followed with a 30 per cent share. In the October–December quarter, developers contributed 46 per cent of overall investments, while institutional investors accounted for 29 per cent. Real Estate Investment Trusts (REITs) also increased their presence, contributing 14 per cent of Q4 inflows.
Office and residential assets continued to anchor investment activity, while transactions expanded across mixed-use developments, warehousing, and data centre segments. The report highlighted the establishment of several new investment and development platforms during the year, indicating growing interest in structured and long-term partnerships within the sector.
Among Indian cities, Mumbai attracted the highest share of capital inflows in 2025, accounting for 24 per cent of total investments. Bengaluru followed with a 20 per cent share, while Delhi-NCR accounted for 11 per cent, reflecting continued concentration of real estate investment in major urban markets.
