India among top 10 global cross-border investment destinations for land & development sites in Q1 FY26
India solidifies its position as a top global destination for cross-border real estate investments, ranking seventh worldwide. Fueled by strong macroeconomic fundamentals and pro-investment policies, India's real estate sector witnessed a 31% year...
India’s strong macroeconomic fundamentals, pro-investment policies, and sustained infrastructure push have significantly enhanced its real estate investment landscape. The first quarter of 2025 witnessed institutional investments in Indian real estate reaching USD 1.3 billion, a 31% year-on-year growth, with foreign capital contributing 40% of the total inflows.
“India’s real estate sector has shown remarkable resilience in the face of global headwinds. The steady inflow of global and regional capital, particularly into land and development assets, reflects increasing investor confidence in the country’s long-term growth story,” said Badal Yagnik, Chief Executive Officer, Colliers India. “With growing participation in residential, life sciences, and data center segments, India is rapidly emerging as a comprehensive investment hub across asset classes.”
The report highlights India’s growing appeal beyond just office spaces, as global investors increasingly diversify into residential, industrial, and warehousing segments. Development platforms and alternative investment structures are also gaining traction, providing investors with flexible and scalable capital deployment models.
“Foreign investor interest in Indian real estate is broadening. While office remains a key focus, the residential segment is witnessing heightened traction, supported by robust demand, favorable returns, and a stable policy environment,” said Vimal Nadar, National Director & Head of Research, Colliers India. “With the benchmark repo rate now at 5.5%, the lowest in three years, we expect investment momentum to accelerate further in the coming quarters.”
India’s positioning in the global landscape is further validated by the broader trend in the Asia Pacific region. Alongside China, Singapore, Australia, and Malaysia, India maintained a strong showing in cross-border activity in Q1 2025. Notably, China accounted for 80% of total cross-border activity in the region, reinforcing Asia Pacific’s dominance.
While the office sector remains the most sought-after across APAC, interest in industrial, retail, and emerging asset classes is gaining pace. Globally, multifamily remains the top sector, but in India, the diversity of investment avenues continues to attract long-term capital aligned with its evolving real estate ecosystem.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.