Hyderabad, Jan 14 .) : Capital inflows into India’s real estate sector rose sharply in calendar year 2025, reaching an all-time high of USD 14.3 billion, marking a 25 per cent year-on-year growth, according to a latest report ‘ India market Monitor Q4 2025- Investments’ released by CBRE South Asias Pvt Ltd.
The October–December quarter (Q4 2025) alone attracted USD 3.3 billion, registering a 30% YoY increase, underscoring sustained investor confidence amid strong domestic demand and steady foreign participation.
Land and office assets remained the key investment drivers, the report stated. Land and development sites accounted for over 46% of total inflows in CY 2025, followed by built-up office assets at 28%. In Q4 2025, land/development sites continued to dominate with over 45% share, while office assets contributed 24%.
Together with warehousing assets, these segments represented 82% of total investment activity during the quarter. Domestic investors played a decisive role, contributing 80% of total investment inflows in Q4 2025. Developers led capital deployment during the year with a 47% share, followed by institutional investors at 30%. In Q4 2025, developers accounted for 46% of investments, institutional investors for 29%, and REITs for 14%, the report said.
Commenting on the trend, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said the sustained dominance of development-led investments, coupled with rising interest in office and warehousing assets, reflects a maturing real estate market.
He noted that over 60% of land acquisitions in 2025 were directed towards residential and office developments, with mixed-use and warehousing projects also gaining traction.
Foreign capital inflows in Q4 2025 were led by Canadian investors (52%), followed by the US (26%).
In addition to direct equity investments, investment and development platforms worth approximately USD 440 million were established during the quarter, primarily across office and residential segments, highlighting growing interest in structured, long-term partnerships.
City-wise, Mumbai emerged as the top investment destination in CY 2025 with a 24% share, followed by Bengaluru (20%) and Delhi-NCR (11%). However, Hyderabad led in Q4 2025, attracting 21% of quarterly inflows, ahead of Delhi-NCR (19%) and Bengaluru (15%).
Looking ahead, CBRE expects greenfield developments to remain resilient across residential, office, mixed-use, warehousing, and data centre segments in 2026. Opportunistic strategies, particularly in office and mixed-use assets, are likely to gain momentum amid limited availability of core assets.
. KNR PRP