India Ranks Fourth Globally in Land Investment Destinations

India has emerged as the fourth most preferred global destination for cross-border investments in land and development sites, according to Colliers’ Global Capital Flows Report released in September 2025. The ranking highlights India’s growing importance in the international real estate investment landscape. Despite broader economic uncertainties affecting the Asia-Pacific (APAC) property market, investor confidence in India’s real estate sector remains resilient.

APAC Real Estate Investments and Market Trends

Real estate investments across nine major Asia-Pacific markets reached USD 71.9 billion during the first half of 2025, representing a 6 per cent year-on-year decline. The markets covered in the report include Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan. Analysts attribute the temporary slowdown to global trade volatility and economic headwinds. However, investment activity is expected to recover in the second half of the year as interest rates stabilise and domestic capital strengthens.

India’s Position in Global Investment Flows

India recorded around USD 3 billion in real estate investments during the first half of 2025, reflecting a 15 per cent decline compared with the same period in the previous year. Nevertheless, the country maintained strong investor interest. Foreign investments accounted for about USD 1.6 billion, representing nearly 52 per cent of institutional inflows. At the same time, domestic investments increased significantly, rising by 53 per cent year-on-year and contributing nearly 48 per cent of total capital deployed.

Key Real Estate Segments Attracting Investors

Residential and office assets remained the primary investment segments in India, together accounting for more than half of the total real estate investment volumes during the period. Residential projects alone attracted nearly USD 0.8 billion in investments. Institutional investors have also increasingly partnered with local developers to acquire or develop office spaces, reflecting long-term confidence in India’s commercial property sector.

Important Facts for Exams

• The Asia-Pacific (APAC) region includes major economies such as Japan, China, India, South Korea and Australia.
• Colliers is a global professional services and investment management company specialising in real estate.
• Cross-border capital flows refer to international investments moving from one country to another.
• Real estate investment assets typically include residential, office, retail and mixed-use developments.

Growing Interest in Mixed-Use and Emerging Assets

Investment interest in mixed-use and retail developments in India has increased significantly. These projects accounted for over 30 per cent of total investments in the first half of 2025, compared with just 7 per cent during the same period in 2024. Integrated developments combining residential, retail and entertainment facilities are gaining popularity in urban areas. Additionally, investors are gradually exploring alternative real estate segments such as data centres, senior living and life sciences facilities, indicating an evolving and diversified investment landscape.