Capital inflows in India’s real estate sector at all-time high of $14.3 billion in 2025

Capital inflows in India’s real estate sector at all-time high of $14.3 billion in 2025

Mumbai, Jan 14 (IANS) Capital inflows into the country’s real estate sector reached an all-time high of $14.3 billion in calendar year 2025, registering a 25 per cent year-on-year growth, a report showed on Wednesday.

During the October-December (Q4) quarter, the sector attracted $3.3 billion worth of investments, recording a 30 per cent on-year increase, according to the report by CBRE South Asia Pvt. Ltd. Institutional investors from Canada and US accounted for 52 per cent and 26 per cent of the foreign capital inflows, respectively, during Q4.

Land/development sites dominated the investment landscape, attracting over 46 per cent of total inflows in 2025, followed by investments into built-up office assets (28 per cent).

For Q4 2025, land/development sites accounted for a share of over 45 per cent, followed by built-up office assets at 24 per cent, said the report.

A sustained dominance of land and development-led investments, alongside rising interest in office and warehousing assets, highlights a maturing market.

“Over 60 per cent of total inflows in site/land acquisitions in full year 2025 were deployed for residential and office developments, with other prominent categories being mixed-use and warehousing projects”, said Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.

The depth of domestic capital, complemented by steady foreign participation, positions India well for continued momentum in 2026, he added.

Last year, developers accounted for a 47 per cent share of total capital deployment, followed by institutional investors (30 per cent share).

In Q4 2025, developers accounted for 46 per cent of overall investments, followed by institutional investors (29 per cent) and REITs (14 per cent).

Office and residential assets continue to anchor the market, while activity expanded across mixed-use, warehousing, and data centre segments. The year also saw establishment of various investment and development platforms, underscoring growing interest in structured, long-term investment partnerships, said Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.

Among the major cities, Mumbai attracted the highest share (24 per cent) of capital inflows in 2025, followed by Bengaluru (20 per cent) and Delhi-NCR (11 per cent).

—IANS

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