India has emerged as one of the fastest-growing real estate investment destinations in the Asia-Pacific region, with institutional inflows rising 29% year-on-year to USD 8.5 billion in 2025, according to a new report by Colliers.

The findings were published in the Asia Pacific Investment Insights March 2026 report, which tracked investment trends across nine major regional markets including Australia, Hong Kong, India, Japan, Mainland China, New Zealand, Singapore, South Korea and Taiwan.

Across the region, total real estate investment volumes reached USD 162 billion in 2025, marking an 8% increase from the previous year, with activity picking up significantly in the second half of the year as investors and sellers aligned on pricing expectations.

Strong Second Half Drives Regional Investment Growth

The report highlighted a notable surge in activity during the latter part of the year. Real estate investments in the second half of 2025 reached USD 87.3 billion, reflecting an 11% annual increase and a 17% rise compared to the first half of the year.

Major regional markets such as South Korea, Japan and Singapore continued to lead overall investment volumes in the Asia-Pacific region.

However, Singapore and India recorded the strongest year-on-year growth in investments, with increases of 35% and 29% respectively, reflecting improving market fundamentals and growing investment opportunities.

Office Assets Continue to Dominate Investments

Office properties remained the largest investment segment across Asia Pacific, supported by strong demand for high-quality office spaces and limited new supply in prime central business districts.

The office sector recorded USD 58.5 billion in investments in 2025, reflecting a 21% year-on-year growth and accounting for 36% of the region’s total real estate investment activity.

In India alone, office assets attracted around USD 4.5 billion, representing more than half of the country’s total real estate investment inflows during the year.

Badal Yagnik, Chief Executive Officer and Managing Director at Colliers India, said the country continues to strengthen its position as a key investment destination in the region.

“India continues to strengthen its position as a key investment destination within the APAC region, recording one of the strongest growth rates in real estate investments among major markets in 2025,” Yagnik said.

He added that foreign investors accounted for about 43% of the USD 8.5 billion inflows, highlighting strong cross-border capital participation in the Indian real estate market.

Retail and Alternative Assets Gain Momentum

Retail investments across Asia Pacific also saw renewed momentum, increasing 15% year-on-year to USD 29.7 billion as improving consumer sentiment boosted investor confidence.

Meanwhile, alternative asset classes emerged as the fastest-growing segment, recording a sharp 191% growth, driven by increasing institutional interest in diversification and long-term yield opportunities.

The industrial and logistics sector remained the second-largest investment segment, recording USD 30.1 billion in investments, although activity moderated slightly compared to the strong performance seen in 2024.

Outlook for 2026 Remains Positive

According to Colliers, real estate investment activity in Asia Pacific is entering a broad-based recovery phase, supported by improving financial conditions, stronger domestic capital flows and increasing cross-border investor participation.

Theo Novak, Managing Director of Capital Markets and Investment Services for Asia Pacific at Colliers, said investors are gradually shifting from a cautious approach to a more confident investment outlook.

“Investors are prioritizing clarity, quality and markets with depth of capital. With domestic capital providing a stable foundation and cross-border interest beginning to re-engage, the region is entering a more disciplined and broad-based recovery phase,” Novak said.

Colliers expects investment momentum in the region to strengthen further in 2026, aided by stabilizing interest rates, easing inflation pressures and improving visibility on financing conditions.

While core sectors such as office assets are expected to remain dominant, alternative real estate segments and selective retail assets are likely to attract increasing capital as investors seek diversification and stable long-term returns.

Also Read: Realty Stocks See Volatile Start as Indian Markets Open; Nifty Realty Trades in Red

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