New Delhi— India remains one of the world’s top 10 destinations for cross-border investment in land and development projects, according to a new report released Wednesday by global real estate services firm Colliers.
Driven by strong market fundamentals, a maturing real estate sector, and continued infrastructure development, India is emerging as a key investment hub in the Asia-Pacific region.
India ranked seventh globally for cross-border capital inflows into land and development sites. While Japan and Australia continued to lead in standing asset investments, India stood out for its appeal in early-stage development opportunities.
“Institutional investments in Indian real estate reached $1.3 billion in Q1 2025—an increase of 31% year-on-year—demonstrating the sector’s resilience and growing investor confidence,” said Badal Yagnik, CEO of Colliers India. “Global and regional capital is flowing steadily into the country, particularly into land and development assets.”
Yagnik noted that growing foreign interest in residential projects, along with rising demand for emerging sectors such as life sciences and data centers, is expected to fuel further growth. The report also highlighted continued expansion in commercial and industrial segments, supported by a robust supply pipeline and alternative investment structures.
Foreign investors contributed nearly 40% of total institutional inflows in the first quarter of 2025, reaffirming long-term global confidence in India’s real estate market.
While office assets remain a core focus, residential investments are gaining traction due to strong demand, attractive returns, and an optimistic domestic outlook.
“This diversification reflects a maturing market where global capital is aligning with India’s evolving real estate landscape,” said Vimal Nadar, National Director & Head of Research at Colliers India. He added that recent repo rate cuts, bringing the benchmark lending rate down to 5.5%—its lowest in three years—will likely further boost investor sentiment and accelerate capital deployment, particularly in the residential sector. (Source: IANS)
