Investment activity in India’s real estate sector is projected to close 2025 on a strong note, driven primarily by significant capital deployment into built-up office and retail assets, according to a recent report by CBRE.
Despite a broader property market maintaining healthy momentum, investors have shown continued interest in these key asset classes, reflecting growing confidence in India’s real estate ecosystem.
Q3 2025 Investment Surge
The report highlights a notable surge in real estate investment activity during the third quarter (July–September) of 2025 compared to the same period in 2024.
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Q3 2025 capital flows: USD 3.8 billion (up 48% YoY and 9% QoQ)
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Total 9M 2025 flows: USD 10.2 billion, marking a 14% rise compared to 2024
These figures underscore strong investor confidence and sustained momentum across multiple property segments.
Greenfield and Development Investments
Greenfield developments are expected to witness robust activity in the coming quarters, with capital flows distributed across:
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Residential
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Mixed-use projects
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Data centres
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Industrial & logistics (I&L) sectors
The report indicates that investors are increasingly seeking opportunistic bets in office and retail segments due to limited availability of investible core assets, targeting higher returns.
Investment Distribution and Domestic Dominance
In Q3 2025:
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Land & development sites, along with built-up office and retail assets, collectively attracted over 90% of total investment flows.
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Domestic investors, predominantly developers, accounted for more than 90% of the total capital inflows.
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Foreign investors: US-based players contributed around 85%, followed by Canadian institutional investors at roughly 15%.
Approximately 72% of capital inflows for site and land acquisitions were directed toward residential and office developments, with the remainder supporting data centres, mixed-use, and warehousing projects.
Investor Confidence and Outlook
These trends reflect strong investor confidence in India’s real estate market. Sustained capital inflows into both core and development assets, coupled with growing demand in key sectors, are expected to maintain robust investment momentum through the end of 2025.
The report suggests that office, retail, residential, and mixed-use developments will remain the primary focus areas, with both domestic and international investors continuing to seek growth opportunities in India’s real estate landscape.
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