India continues to shine on the global investment radar, especially in the land and development sites segment, maintaining its position among the top 10 global cross-border capital destinations, according to the Colliers Global Capital Flows June 2025 Report.
With institutional investments in Indian real estate reaching USD 1.3 billion in Q1 2025—a 31% year-on-year growth—the country’s appeal to foreign and regional investors is growing rapidly. Notably, foreign investors contributed 40% of the total institutional inflows during the quarter, underscoring strong and sustained global interest in India’s maturing property market.
Asia Pacific Dominates Global Investment in Development Sites
Seven of the top 10 global destinations for cross-border capital in land and development sites are in Asia Pacific, including India, which ranks 7th globally.
Top 10 Global Cross-Border Capital Destinations – Land & Development Sites (Q1 2025)
| Rank | Country | Region |
|---|---|---|
| 1 | China | Asia Pacific |
| 2 | Singapore | Asia Pacific |
| 3 | Australia | Asia Pacific |
| 4 | Malaysia | Asia Pacific |
| 5 | South Korea | Asia Pacific |
| 6 | Vietnam | Asia Pacific |
| 7 | India | Asia Pacific |
| 8 | Germany | Europe |
| 9 | Hong Kong | Asia Pacific |
| 10 | Japan | Asia Pacific |
India’s rise is driven by robust demand, regulatory maturity, and favourable policy interventions, especially in infrastructure and urban development. The increased focus on development platforms, alternate investment structures, and emerging segments such as data centers and life sciences is further contributing to the nation’s growing investment magnetism.
India Real Estate Investment Highlights – Q1 2025
| Metric | Value |
|---|---|
| Institutional Investment (Q1 2025) | USD 1.3 Billion |
| YoY Growth | 31% |
| Foreign Investor Share | 40% |
| Most Invested Asset Classes | Office, Residential |
| Repo Rate (as of Q1 2025) | 5.5% |
| Emerging Segments | Life Sciences, Data Centers, Warehousing |
“India’s investment ecosystem is now more credible and dynamic, attracting a wide array of capital flows,” said Badal Yagnik, CEO, Colliers India. “We see increasing diversification, with investors moving beyond commercial assets into residential and alternative segments.”
Favourable Economic and Policy Environment
The Reserve Bank of India’s consecutive repo rate cuts, bringing the benchmark lending rate to 5.5%, have also boosted investor confidence. This monetary easing is expected to stimulate real estate demand, especially in the residential sector, and support capital deployment across asset classes.
“Foreign capital is now aligning with India’s changing real estate contours,” said Vimal Nadar, Head of Research, Colliers India. “This shows investor confidence in both short-term resilience and long-term structural strength of India’s real estate market.”
Conclusion
India’s inclusion among the top cross-border destinations for land and development sites is a clear signal of the country’s rising stature in the global investment community. As India continues to offer stable returns, regulatory clarity, and a growing consumption base, the country is expected to play an even larger role in the Asia Pacific investment narrative.
Also Read: Investment in real estate and IPO
