Colliers’ latest 2025 Global Investor Outlook survey reveals strong optimism among Asia Pacific (APAC) investors, forecasting a significant uptick in institutional investments across the APAC region, with India poised to be a key beneficiary. The report anticipates that heightened investor confidence, coupled with a favorable economic outlook and a more accommodative interest rate environment, will drive cross-border investments and market activity in 2025.
Key survey findings indicate that 68% of APAC investors expect regional economic growth to positively impact their real estate portfolios. Additionally, 67% plan to increase their investments in the region in 2025, with a notable preference for industrial, office, and logistics sectors. The survey also revealed that 69% of APAC investors intend to allocate more than 30% of their total global assets under management (AUM) to real estate over the next five years.
The Indian real estate market is expected to experience substantial institutional investment in the coming years. The country’s robust economic growth prospects, combined with increasing demand across key real estate sectors, have placed India at the forefront of APAC investment strategies. In recent years, capital inflows from APAC countries have surged, with institutional investments in Indian real estate totaling USD 19 billion since 2021. Notably, office assets have attracted over 40% of these inflows, though industrial, warehousing, and residential sectors have gained momentum recently.
In the first three quarters of 2024 alone, institutional investments in India’s real estate sector reached USD 4.7 billion, accounting for 87% of total 2023 inflows. This continued growth trend positions India for another record year of institutional investments, with strong contributions from the office, industrial, and residential sectors. Experts predict that 2025 will continue this momentum, particularly in developmental office assets and logistics properties, driven by demand from e-commerce and third-party logistics (3PL) players.
“The office sector is likely to have its best year in India, with record absorption driven by GCCs (Global Capability Centers) and strong domestic demand. The residential sector is also seeing robust end-user sales,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India. “Moreover, the equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital entering the market.”
Investments from APAC countries are increasingly playing a significant role in India’s real estate sector. As of 2024, APAC nations contributed USD 1.3 billion to India’s overall real estate investments, accounting for 28% of total foreign institutional inflows. Countries like Singapore, Canada, and the USA have been leading sources of investment, with Singapore’s share rising to 28% in 2023.
Looking ahead to 2025, Colliers experts highlight significant potential in non-core segments, including data centers, senior living, student housing, and life sciences, driven by evolving demographic patterns and shifting consumption trends. With the continued growth of e-commerce and the expanding industrial and warehousing sectors, investors are increasingly targeting niche asset classes, including last-mile logistics and cold storage.
“The evolving real estate landscape in India offers compelling opportunities across both core and non-core segments,” said Vimal Nadar, Senior Director and Head of Research, Colliers India. “As demand grows, investors will look for strategic investments in developmental office assets, logistics, and residential redevelopment projects in Tier I cities.”
Colliers’ Global Investor Outlook underscores that while logistics and industrial assets are now seen as core investments for many APAC investors, there are challenges ahead. A limited supply of investable assets in emerging sectors like life sciences and senior living may constrain immediate opportunities. Nevertheless, these sectors are expected to gain traction as investors look to diversify their portfolios.
Overall, the outlook for institutional investment in Indian real estate is highly positive, with momentum set to build in 2025, driven by favorable market conditions, strong demand across key sectors, and growing interest from APAC investors.
For further details, visit Colliers’ full report on the 2025 Global Investor Outlook: Colliers 2025 Global Investor Outlook.
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