Capital inflows into India’s real estate sector hit an all-time high of $14.3 billion in 2025, marking a 25% year-on-year growth. During the October-December quarter, the sector attracted $3.3 billion in investments, showing a 30% increase from the previous year. Institutional investors from Canada and the US contributed significantly to the foreign capital inflows during this period.
Land and development sites were the most favored investment category, receiving over 46% of the total inflows in 2025, followed by investments in built-up office assets at 28%. In the fourth quarter of 2025, land and development sites continued to dominate with a share of over 45%, while built-up office assets accounted for 24% of the investments.
The market demonstrated a strong preference for land and development-led investments, coupled with growing interest in office and warehousing assets, indicating a maturing real estate market. Anshuman Magazine, Chairman and CEO of CBRE India, highlighted that a significant portion of the investments in land acquisitions were directed towards residential and office developments, with mixed-use and warehousing projects also gaining traction.
India’s real estate market is well-positioned for sustained growth in 2026, supported by a robust domestic capital base and consistent foreign investments. Developers led the capital deployment in 2025 with a 47% share, followed by institutional investors at 30%. In the fourth quarter, developers accounted for 46% of investments, while institutional investors and REITs contributed 29% and 14%, respectively.
The market continued to be anchored by office and residential assets, with growing activity in mixed-use, warehousing, and data center segments. Various investment and development platforms were established in 2025, signaling a rising interest in structured, long-term investment partnerships. Gaurav Kumar, Managing Director of Capital Markets and Land at CBRE India, emphasized the expanding investment landscape and the increasing focus on strategic investment collaborations.
Mumbai led the way in attracting capital inflows in 2025, capturing 24% of the total investments, followed by Bengaluru at 20% and Delhi-NCR at 11%.
