India’s real estate sector continues to attract significant domestic and global investment, underlining sustained confidence in the country’s property market. According to the CBRE South Asia Pvt Market Monitor Q3 2025 – Investments, equity inflows rose sharply during the third quarter of 2025, reaching $3.8 billion, a 48% increase year-on-year (YoY) from $2.6 billion in Q3 2024.
The surge in capital comes amid heightened interest in land and development sites as well as built-up office and retail assets, which together accounted for over 90% of total inflows. This trend reflects investor demand for a balance between greenfield development opportunities and income-generating assets that offer steady returns.
Strong Performance in the First Nine Months
During the first nine months of 2025 (January–September), total equity investments in India’s real estate sector reached $10.2 billion, up 14% YoY from $8.9 billion in the same period last year.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, said, “India’s real estate sector is entering a phase of accelerated growth, driven by continued investor confidence. Both developers and institutional investors are actively seeking high-quality assets across residential, commercial, and mixed-use projects.”
This growth demonstrates that the sector is not only resilient but also expanding in depth, with investors increasingly viewing India as a long-term destination for real estate capital.
Asset Mix Driving Investment
The third-quarter inflows were largely dominated by land and development sites and built-up office and retail properties, reflecting strong investor interest in both development potential and income-generating assets.
According to CBRE, the diversified nature of investments points to growing confidence in India’s ability to host a wide variety of real estate projects, including residential, office, mixed-use, industrial, logistics, and data centre developments.
Gaurav Kumar, Managing Director, Capital Markets and Land at CBRE India, added, “The investment landscape is becoming more diversified. India’s ability to combine strong domestic capital with global institutional participation will continue to differentiate it in the years ahead.”
City-Wise Investment Trends
Mumbai emerged as the leading city for investment, capturing 32% of total inflows, followed by Pune at 18% and Bengaluru at 16%. Mumbai’s dominance is attributed to its status as India’s financial hub, attracting strong interest in both commercial and residential projects. Pune and Bengaluru continue to grow as hubs for IT and tech-driven developments, further boosting investor confidence.
The strong inflows reflect a balanced investor mix: developers contributed 45% of total equity investments, while institutional investors added 33%. This combination of domestic and global capital highlights a mature and stable investment ecosystem.
Outlook for the Coming Quarters
CBRE projects that momentum will continue into the fourth quarter of 2025. Built-up office and retail assets are expected to dominate the market, particularly due to limited availability of prime properties. Meanwhile, greenfield residential, mixed-use, and data centre projects are likely to sustain strong investor interest, offering attractive opportunities for both long-term capital appreciation and income generation.
Anshuman Magazine further noted,, “With a growing pipeline of quality projects and supportive investor sentiment, India’s real estate sector is poised for robust growth, balancing high-demand urban locations with emerging secondary cities.”
With $10.2 billion in equity inflows in the first nine months of 2025 and a 48% surge in Q3, India’s real estate market is showing strong signs of growth and resilience. The sector benefits from a combination of domestic developers, global institutional investors, and a diversified asset mix, making it one of the most attractive investment destinations in Asia.
Cities such as Mumbai, Pune, and Bengaluru continue to lead, supported by robust infrastructure, urban development, and sustained demand. With continued investment across residential, commercial, and mixed-use projects, the Indian real estate sector is well-positioned to close 2025 on a strong note and maintain momentum into 2026.
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