India has emerged as one of the fastest-growing real estate investment destinations in the Asia Pacific region in 2025, recording a 29% year-on-year rise in investment activity, according to Colliers’ Asia Pacific Investment Insights March 2026 report.
The report noted that institutional investments in Indian real estate reached about $8.5 billion in 2025, with foreign investors accounting for around 43% of the inflows.
The surge in investment reflects improving market fundamentals, strong economic growth prospects and sustained demand for high-quality assets, particularly in the office sector.
“India continues to strengthen its position as a key investment destination within the APAC region,” said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India. He added that while domestic capital remains the primary driver of investment activity across Asia Pacific markets, India has seen relatively stronger cross-border capital movement compared with several regional peers.
However, Yagnik noted that global economic headwinds and ongoing trade negotiations remain key factors to monitor for future investment trends.
Office assets dominate investments in India
Within the Indian market, office assets continued to dominate institutional investment activity.
Office investments in India reached around $4.5 billion in 2025, accounting for more than half of the total institutional real estate inflows during the year.
According to Vimal Nadar, National Director – Research at Colliers India, office assets remain the most preferred investment segment for global and domestic investors due to strong occupier demand and the availability of institutional-grade assets.
“Office assets continue to remain the top preference for institutional investors across most APAC markets, including India,” Nadar said.
He added that platform deals and partnerships between global investors and domestic developers are expected to gain traction, enabling large-scale capital deployment in India’s office market.
Asia Pacific investments rise
Across the Asia Pacific region, total real estate investment volumes across nine key markets reached $162 billion in 2025, marking an 8% increase from the previous year.
The nine markets tracked in the report include Australia, Hong Kong, India, Japan, mainland China, New Zealand, Singapore, South Korea and Taiwan.
Investment activity strengthened significantly in the second half of the year, with $87.3 billion in deals recorded during H2 2025. This represented an 11% year-on-year increase and a 17% rise compared with the first half of the year, indicating improving alignment between buyers and sellers on pricing expectations.
Among these markets, South Korea, Japan and Singapore recorded the largest investment volumes, highlighting the depth and resilience of these established real estate markets.
However, Singapore and India recorded the strongest growth rates, at 35% and 29% respectively, signalling expanding investment opportunities and improving market fundamentals.
Office sector leads regional investments
Across Asia Pacific, office assets remained the dominant real estate investment sector, attracting $58.5 billion in capital during 2025, or 36% of total investments.
The office segment saw a 21% year-on-year increase in investments, supported by sustained demand for high-quality office buildings in prime central business district locations and limited supply of premium assets.
The industrial and logistics sector ranked second, with $30.1 billion in investment, although activity moderated slightly from the strong levels seen in 2024.
Retail real estate also saw renewed investor interest, with investments rising 15% year-on-year, supported by improving consumer sentiment and stronger asset performance.
Meanwhile, alternative asset classes such as data centres, life sciences facilities and student housing emerged as the fastest-growing segments, driven by increasing institutional demand for diversified real estate portfolios.
Domestic capital anchors recovery
The rebound in Asia Pacific real estate investment activity has been largely supported by strong domestic capital flows, which continued to anchor transactions across most markets.
At the same time, cross-border capital remained active in key gateway markets such as Hong Kong, Singapore and India, reflecting continued global investor interest in high-quality assets.
According to Theo Novak, Managing Director, Capital Markets & Investment Services, Asia Pacific at Colliers, investor sentiment across the region is shifting from caution toward renewed conviction.
APAC real estate investments reach $162 billion in 2025, up 8% YoY, with strong momentum in H2 2025
Office assets dominate investment activity, surging 21% YoY to $58.5 billion
Retail investments rise 15% YoY to $29.7 billion, while alternative assets soar 191% amid growing diversification demand
South Korea, Japan and Singapore lead investment volumes; Singapore and India record the fastest growth across APAC
India’s real estate inflows hit a record $8.5 billion in 2025, with office assets accounting for over half of total investments
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