India’s Real Estate Sector Sees Record Capital Inflows of $14.3 Billion in 2025

Mumbai — Capital inflows into India’s real estate sector touched a historic high of $14.3 billion in calendar year 2025, marking a 25 per cent year-on-year increase, according to a report released on Wednesday.

The sector attracted $3.3 billion in investments during the October–December (Q4) quarter alone, registering a 30 per cent annual growth, the report by CBRE South Asia Pvt. Ltd. stated. Institutional investors from Canada and the United States dominated foreign investments during the quarter, accounting for 52 per cent and 26 per cent of total inflows, respectively.

Land and development sites continued to lead the investment landscape, drawing over 46 per cent of total capital inflows in 2025, followed by built-up office assets, which accounted for 28 per cent. A similar trend was observed in Q4, with land and development sites contributing more than 45 per cent of investments, while built-up office assets made up 24 per cent.

The report highlighted that the sustained dominance of land-led investments, along with increasing interest in office and warehousing assets, reflects a steadily maturing real estate market.

“More than 60 per cent of total inflows into site and land acquisitions in full-year 2025 were directed towards residential and office developments, with mixed-use and warehousing projects also emerging as key categories,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE. He added that the strong base of domestic capital, supported by consistent foreign participation, positions the sector well for continued growth in 2026.

Developers remained the largest contributors to capital deployment, accounting for 47 per cent of total investments in 2025, followed by institutional investors with a 30 per cent share. In Q4, developers contributed 46 per cent of overall investments, while institutional investors and REITs accounted for 29 per cent and 14 per cent, respectively.

Office and residential assets continued to anchor the market, while investment activity expanded across mixed-use, warehousing, and data centre segments. The year also witnessed the formation of several investment and development platforms, indicating rising interest in structured, long-term partnerships, said Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.

Among major cities, Mumbai emerged as the top destination for capital inflows in 2025, attracting 24 per cent of total investments, followed by Bengaluru at 20 per cent and Delhi-NCR at 11 per cent.

With inputs from IANS