From US to Vietnam: How foreign real estate players are making a big entry into India

India's real estate market is drawing a wider pool of international players as foreign developers and institutional investors look to participate in the country's next phase of urban growth. The interest is no longer limited to commercial offices and investment assets. Overseas companies are increasingly exploring residential developments, integrated townships, mixed-use projects, and urban infrastructure, often working alongside Indian partners or state governments.

The trend reflects the changing nature of India's property market. Rising incomes, infrastructure spending, and rapid urbanisation are creating demand for larger and more sophisticated developments, giving global real estate companies an opportunity to bring their capital, development experience and operating models to the country.

Why global real estate companies are looking at India


India's urbanisation story is one of the biggest factors driving international interest. According to World Bank projections, India's urban population could almost double from around 480 million to 951 million by 2050. Such expansion will require millions of additional homes as well as roads, public transport, commercial spaces, schools, hospitals and other urban infrastructure.

The opportunity is already visible in the residential market. According to Knight Frank India, homes priced above ₹1 crore accounted for 54% of residential sales across the country's eight largest cities in the first half of 2026, compared with 49% a year earlier.

The shift indicates growing demand for higher-quality housing, particularly in India's major urban centres.

At the same time, India's cities are investing heavily in transport infrastructure, opening up new development corridors and creating opportunities for projects that combine residential, commercial and social infrastructure. Mumbai and the wider Maharashtra region are particularly important in this regard.

The Mumbai Metropolitan Region Development Authority's long-term transport programme envisages significant investment in metro, suburban rail and road infrastructure through 2041. Such projects are expected to reshape the region's urban geography and create new opportunities for real estate development. This combination of infrastructure expansion and housing demand is one reason international developers are paying closer attention to India.

From global capital to integrated development

Foreign participation in Indian real estate has taken several forms. US-based investment firms such as Blackstone and Brookfield have built significant positions in Indian commercial real estate, while Japanese companies have increasingly entered through partnerships with domestic developers. The development model is also changing.

Rather than simply investing in individual buildings, some international companies are looking at larger ecosystems in which homes, offices, retail, schools, healthcare, leisure and transport are planned together.

Vietnam's Vingroup is among the latest international groups to make an entry into the Indian market. The company signed an agreement with Telangana covering a proposed development of around 2,500 hectares. In Maharashtra, the group signed an MoU with the state government and MMRDA in April 2026 to explore potential investments of around $6.5 billion.

Pham Sanh Chau, CEO of Vingroup Asia, said: "We see India as a strategic market where our experience can complement the country's growth ambitions," Chau said, adding that the company wants to develop a broader business ecosystem across India's major economic centres.

"Over the past two decades, integrated urban developments that bring residential communities together with healthcare, education, retail, infrastructure and green mobility has helped reshape the way people live in Vietnam, creating more connected, self-sufficient and modern urban communities," a Vinhomes' spokerperson said..

India's major cities are increasingly adopting this approach as congestion and travel times become larger urban challenges. Foreign developers with experience in large-scale integrated projects could therefore find opportunities beyond conventional housing developments.

Vingroup's entry also needs to be viewed alongside the growing presence of Japanese and US real estate companies. The international companies are increasingly using local partnerships to understand India's complex land, regulatory and consumer environment. The model reduces the risks associated with entering a new market while allowing foreign companies to retain exposure to the country's long-term growth.

US investors are also taking another route into India. Companies such as Blackstone and Brookfield have accumulated large commercial real estate portfolios, particularly in the office sector. Their approach has generally focused more on investment platforms and income-generating assets than on building entire urban communities.

That difference is important because it shows that there is no single model for foreign participation in Indian real estate.

Some companies are primarily investors. Others are developers. Some are creating joint ventures with Indian firms, while others are exploring partnerships directly with state governments.

The housing gap remains a major opportunity

Despite the growth in premium housing, India's real estate opportunity is not confined to the luxury or upper-middle segments. Knight Frank India estimates that urban India currently has a shortage of around 9.4 million affordable homes, with the gap potentially rising to nearly 30 million by 2030.

This creates a complex market for developers. India needs high-quality housing for affluent consumers, but it also needs large volumes of affordable and mid-market homes as cities expand.

Foreign developers with the capital and capacity to undertake large projects could potentially address parts of this demand, provided their projects are commercially viable and adapted to local requirements.

For the Indian real estate industry, however, the larger trend is already visible: international players are moving deeper into the development side of the market, and the next phase of India's urban growth is increasingly becoming a global investment story.