India Ranks No. 4 Globally in Land Investments as APAC Real Estate Flows Reach $71.9 Billion

The global real estate market is still developing, with investors interested in stable and high growth markets. According to a recent report, India has become the fourth largest destination in the world for land and development investments, which has strengthened its position in the property market in the Asia Pacific region.

The Colliers International Investment Insights H1 2025 report states that real estate investments in nine major Asia-Pacific (APAC) markets reached USD 71.9 billion in the first half of 2025. Though this represents a 6% drop on a year-on-year basis, analysts expect the market to pick up as the economic situation becomes more stable.

Despite the small decline, India has a strong real estate investment environment, supported by the rising demand for residential and office properties, an increase of foreign investments and the growth of domestic capital.

APAC Real Estate Investment Future (H1-2025).  

Asia Pacific has continued to be one of the most vibrant real estate markets in the world. The Investment Insights H1 2025 report, which was published in September, assessed investment activity in 9 key markets:  

• Australia  

• Mainland China  

• Hong Kong  

• India  

• Japan  

• Singapore  

• South Korea  

• New Zealand  

• Taiwan  

A combination of these markets had USD 71.9 billion real estate investments in the first half of 2025.  

Key Market Insights  

• Total investments decreased 6 percent annually.  

• The investor sentiment was influenced by global trade volatility.  

• Macroeconomic issues slowed down certain cross border transactions.  

• Stabilization of interest rates can stimulate the second half of 2025.  

Despite these headwinds, the Asia-Pacific region still dominates in real estate capital flows across the world with seven of the top ten global destinations in terms of land and development investments being in APAC. 

The Emerging Leadership in India in Global Land Investments.  

The Indian property market has continued to get international investors. India was ranked the fourth most preferred destination of the international cross border capital in land and development locations according to the Colliers International Global Capital Flows Report, September 2025. This ranking indicates the increasing confidence of the international investors in the real estate fundamentals of India such as:  

• Strong economic growth  

• Rapid urbanization  

• Rising housing demand  

• Growing commercial office market.  

India Real Estate Investment (H1 2025).  

In the first 6 months of 2025, India had registered:  

Total investments: about USD 3 billion.  

• Year‑on‑year decline: about 15%  

• Foreign investment: USD 1.6 billion.  

• Foreign share of inflows: 52%  

• Contribution of domestic capital: 48 per cent.  

Although the total value of the investment dropped a bit, the investor confidence is high because there is an equal contribution of international and domestic sources of capital.  

Strong Foreign and Domestic Capital Participation  

India is still one of the most promising markets in the Asia-Pacific region according to Badal Yagnik. India remains an attractive country in the real estate investment environment in Asia Pacific. The foreign investments were also high at USD 1.6 billion and contributed approximately 52% of institutional investments in H1 2025.  

Key Observations  

• Over one-third of the foreign inflows were made up of APAC investors.  

• Office and residential developments are still being financed by institutional investors.  

• Long term market fundamentals are appealing.  

Also, the rate of domestic capital deployment grew by 53 percent annually, which proves that local investors are becoming more confident in the potential of Indian real estate growth.  

High Demand for Residential and Office Spaces  

The high demand for quality residential and commercial spaces is one of the major drivers of real estate investments in India. According to the report: 

Residential and office investments made more than 50% of investments.  

• USD 0.8 billion came solely with residential projects.  

• Institutional investors collaborate with local developers in office developments.  

This trend reflects the fact that Grade-A office spaces and housing projects remain in demand in large urban centers in India.  

Factors Supporting Investment Growth  

• Streamlining of GST policies.  

• Rising urban population  

• Metro expansion of corporates.  

• High demand for housing around festive seasons.  

Mixed Use and Retail Developments in India

The other trend emerging in the real estate market in India is the increasing popularity of mixed use developments. These integrated projects are a combination of:

• Residential apartments  

• Retail outlets  

• Entertainment zones  

• Lifestyle amenities  

• Office spaces  

Mixed Use Projects Investment Growth.  

Retail and mixed use projects represented more than 30% of investments in H12025. In 2024, this share was only 7 %. This drastic growth implies that there is a great interest among investors in integrated urban developments particularly in the high density urban areas.  

APAC Investment Trends by Property Type  

In the Asia-Pacific region, investors were showing apparent preferences on some real estate asset classes.  

Office Sector Leads Investments  

Office real estate constituted 36 percent of the total investment volume in the region. The countries where there is high office investment activity include:

• South Korea  

• Japan  

Premium office spaces are in high demand because of the growth of corporations and the necessity to ensure a modern workplace.  

Retail Investments Making a Comeback  

In APAC, retail real estate investments grew by 13 percent during the year. The key determinants of retail transactions include:

• Australia  

• South Korea  

• Mainland China  

The restoration of the retail investments is an indicator that confidence is restored in income earning commercial assets.  

What is Making India Real Estate Investment Grow?  

Vimal Nadar has put down a number of structural factors that have led to the increasing prominence of India in the world real estate market.  

Major Growth Drivers :

Policy Support - The government reforms and regulatory enhancements increase transparency and investor confidence.  

Good Demand in Asset Classes - The residential, office and mixed-use developments are under strong demand.  

Attractive Yield Spreads - It has returns that are superior to most markets across the globe.  

Diversification in Portfolio - Investors venture into new real estate areas to reduce risks.  

New Real-Estate Investment Segments.  

The real estate investors are slowly diversifying out of the traditional property industries. New emerging segments are:  

• Data centres  

• Senior living projects  

• Life sciences real estate  

• Student housing  

• Logistics and warehousing  

Such alternative asset classes should form a crucial part of the following stage of the real estate investment development in the Asia-Pacific region.  

Why India is still a major real estate investment destination.  

India is a favorable location in terms of real estate investment around the globe because of a number of reasons.  

Key Advantages  

• Rapid urbanization  

• Population of middle classes growing.  

• Growing IT and corporate industries.  

• Raising the level of infrastructure development.  

• Good economic development prospects.  

These fundamentals go on reinforcing the role of India in the global real estate capital flows.

FAQs

Why was India ranked number four in the world in terms of investments in land?
The fourth position was obtained on the global scale because of strong investor demand in land and development sites, rise of foreign investment and growth of residential and commercial real estate markets.

What was the amount of real estate investment that India received in H1 2025?
In the first half of 2025, India was estimated to receive USD 3 billion in real estate investments.

What percentage of India’s real estate investment came from foreign investors?
The foreign investors added about USD 1.6 billion, which was about 52 per cent of the institutional investments in India.

Which real estate sectors attracted the most investment in India?
The highest proportions of investments were in the residential and office sectors, which consisted of over half of the total real estate investments.

What is the reason behind increased popularity of mixed-use developments in India?
Mixed-use developments combine residential, retail, and lifestyle spaces within a single project, making them attractive to both investors and urban residents.

Conclusion

The fact that India is rising to be the fourth in the world in terms of land and development investments is an indicator of the rising power of the Indian real estate market.

Despite the fact that the investments in APAC real estate market have reached USD 71.9 bn. In the context of a slight decrease in the first half of 2025, the perspectives are optimistic in the long term.

Strong local capital base, consistent inflow of foreign capital, rising residential and office space demand, and the swift growth of mixed-use developments all contribute to the rising impact of India on the worldwide capital flows in real estate.

With the stabilization of the economic condition and increased predictability of interest rates, India will keep on receiving huge real estate investments and will have a key role to play in the future of Asia-Pacific property market.