India continues to gain global traction in cross-border real estate investments, specifically in land and development assets, as per the June 2025 Global Capital Flows report by Colliers. With USD 1.3 billion institutional inflows in the first quarter of 2025, India ranked seventh among the top ten global destinations for cross-border capital in land and development sites, reaffirming its growing strategic importance.
The Asia-Pacific region remained the leader in land and development capital deployment. India ranked seventh on the global list for cross-border investment destinations, joining the league of dominant APAC markets like China, Singapore, Malaysia, and Australia.
Foreign Capital Fuels Indian Real Estate Growth
Out of the total institutional investment recorded in Q1 2025, foreign capital accounted for 40 per cent, reflecting a stable long-term outlook from international investors. This trend signals a growing interest in Indian real estate, particularly in segments beyond traditional commercial office spaces.
Residential real estate is gaining momentum, driven by favourable pricing, rising urban demand, and improved returns. At the same time, alternate asset classes like life sciences infrastructure and data centres are drawing investor attention, indicating broader sectoral diversification.
Low Lending Rates Strengthen Capital Movement
The recent cut in repo rates, which brought the benchmark lending rate to 5.5 per cent, the lowest in three years, is likely to enhance liquidity and encourage deeper capital deployment across various asset classes. With lower borrowing costs and robust policy backing, India’s real estate sector is positioned for continued foreign inflows.
Industrial and Warehousing Segments Offer Fresh Opportunities
Investors are also eyeing the industrial and logistics segments, which are seeing expansion due to supply chain growth and the rise of e-commerce. Development platforms and new investment structures are further facilitating access to these high-potential areas.
India’s consistent position in global investment rankings reflects a maturing real estate environment, underpinned by structural improvements, infrastructure development, and diverse capital deployment opportunities.
