Capital inflows into India’s real estate sector rose 25 per cent year-on-year to an all-time high of $14.3 billion in calendar year 2025, underscoring sustained investor confidence across asset classes,
according to a report released by CBRE South Asia Pvt Ltd.
The October-December quarter saw equity investments of $3.3 billion, marking a nearly 30 per cent rise compared with the year-ago period. The momentum in the final quarter further reinforced 2025 as one of the strongest years for real estate capital inflows in the country.
Land and development sites continued to dominate investor interest. These assets accounted for over 46 per cent of total inflows during 2025, followed by built-up office assets with a share of about 28 per cent. In Q4 2025 as well, land and development sites led investment activity with a share of more than 45 per cent, while office assets accounted for around 24 per cent. Together with warehousing assets, land, office and industrial properties made up nearly 82 per cent of total investment activity during the quarter.
Commenting on the trend, Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa at CBRE, said the continued dominance of land-led investments alongside growing interest in office and warehousing assets points to a maturing market. “Over 60% of total inflows in site / land acquisitions in full year 2025 were deployed for residential and office developments, with other prominent categories being mixed-use and warehousing projects,” he said, adding that strong domestic capital, supported by steady foreign participation, positions India well for sustained momentum in 2026.
Developers remained the largest contributors to capital deployment during the year, accounting for about 47 per cent of total investments, followed by institutional investors with a share of around 30 per cent. In the December quarter, developers continued to lead with 46 per cent of overall investments, while institutional investors accounted for nearly 29 per cent and REITs for about 14 per cent.
Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, said strong domestic demand and consistent foreign investor participation helped reinforce market resilience. “Office and residential assets continue to anchor the market, while activity expanded across mixed-use, warehousing, and data center segments,” he said, noting that 2025 also saw the creation of several investment and development platforms, reflecting growing interest in structured, long-term partnerships.
Foreign capital inflows during Q4 2025 were led by institutional investors from Canada and the US, which accounted for 52 per cent and 26 per cent, respectively. In addition to direct equity investments, development and investment platforms worth around $440 million were established during the quarter across the office and residential segments.
City-wise, Mumbai attracted the largest share of capital inflows during 2025 at 24 per cent, followed by Bengaluru at around 20 per cent and Delhi-NCR at approximately 11 per cent. However, the trend shifted in the December quarter, with Hyderabad emerging as the top destination with a 21 per cent share, followed by Delhi-NCR at about 19 per cent and Bengaluru at nearly 15 per cent.
Looking ahead, CBRE expects greenfield activity to remain resilient across residential, office, mixed-use, warehousing and data centre developments. “Opportunistic strategies, particularly in office and mixed-use segments, are expected to gain prominence amidst the limited availability of core assets,” Anshuman Magazine said.
