India climbs to No. 4 global spot for land investments as APAC realty flows hit $71.9bn

Real estate investments across nine major Asia-Pacific (APAC) markets reached USD 71.9 billion in the first half of 2025, a 6 per cent year-on-year decline, according to Colliers’ Investment Insights H1 2025 report released in September.

The research, covering Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan, attributes the dip to ongoing global trade volatility and broader economic headwinds, though the sector is expected to gain momentum in the second half of the year as interest rates stabilise and domestic capital remains strong.Despite the modest slowdown, India has strengthened its position within the regional investment landscape, ranking fourth globally as a destination for cross-border capital into land and development sites, according to Colliers’ Global Capital Flows Report – September 2025.

The report also notes that seven of the top ten global destinations for land and development investments are located in APAC, highlighting the region’s growing importance in global real estate capital flows.In India, real estate investments totalled around USD 3 billion in H1 2025, reflecting a 15 per cent year-on-year decline. However, investor interest remained strong, supported by both foreign and domestic capital.

Foreign investments accounted for about USD 1.6 billion, or 52 per cent of institutional inflows, while domestic capital deployment surged 53 per cent year-on-year, contributing nearly 48 per cent of total investments during the period.“India continues to stand out as a promising country within Asia Pacific’s real estate investment landscape,” said Badal Yagnik, Chief Executive Officer, Colliers India. “Foreign investments remained strong at USD 1.6 billion and accounted for around 52 per cent of institutional investments in India during H1 2025.

APAC investors contributed more than one-third of these inflows, reaffirming India’s strategic importance in cross-border capital flows.

”He added that strong demand for high-quality spaces, ongoing simplification of GST regulations and expectations of higher consumption during the festive season are supporting investor confidence. According to Colliers, real estate investments in India are likely to end 2025 on a strong note, with core segments such as residential and office assets continuing to attract significant capital.Across APAC, office assets remained the most preferred investment class, accounting for 36 per cent of total investment volumes in the first half of the year, with South Korea and Japan leading activity in the segment. Retail investments rose 13 per cent year-on-year, driven by transactions in Australia, South Korea and Mainland China, reflecting renewed investor confidence in income-generating retail assets.Within India, residential and office assets together accounted for more than half of all real estate investments during H1 2025, with residential projects attracting around USD 0.8 billion. Institutional investors have increasingly partnered with local developers to acquire or develop office projects, signalling continued long-term confidence in the country’s commercial real estate sector.The report also highlights a sharp rise in investment interest in mixed-use and retail developments in India, which together accounted for over 30 per cent of total investments, compared with just 7 per cent during the same period in 2024.

This growth reflects the rising popularity of integrated developments that combine residential, retail, entertainment and lifestyle spaces, particularly in high-density urban areas.“India’s prominence in the Asia Pacific region continues to grow, driven by strong demand traction across real estate asset classes,” said Vimal Nadar, National Director and Head of Research at Colliers India. He noted that favourable policy measures, improving yield spreads and increasing investor appetite for portfolio diversification are supporting long-term growth in the country’s property market.Looking ahead, Colliers expects investment activity across APAC to improve in the second half of 2025, supported by easing inflation, stable monetary policy and improving yield spreads. Investor interest is also gradually expanding beyond traditional asset classes to alternative segments such as data centres, senior living and life sciences, signalling an evolving and more diversified real estate investment landscape across the region.