India’s Reality sector saw capital inflow of USD 3 billion in H1 2025, down 15% (YoY); H2 to perform better: Colliers
(source : ANI) ( Photo Credit : ani)
India’s real estate market drew in $3 billion in capital during the first half of 2025, a 15% drop from the same period last year, according to Colliers’ latest report, Investment Insights H1 2025.
Even with this slowdown, interest from big investors stayed strong. Both local and international money poured in, keeping the sector buzzing. Experts predict the second half of 2025 will pick up steam, thanks to steadying interest rates, solid homegrown investments, and more money flowing into diverse spots across Asia-Pacific countries.
Foreign cash made up $1.6 billion of the total—that’s 52%—with investors from Asia-Pacific leading the charge, contributing over a third. On the home front, domestic investments jumped 53% year-over-year and claimed nearly half the pie.
“India keeps shining as a top pick in the Asia-Pacific real estate scene,” said Badal Yagnik, CEO of Colliers India. He pointed to booming demand for premium spaces, simpler GST rules, and excitement around higher spending during the upcoming festivals, which all boost confidence in Indian properties.
Residential and office properties grabbed more than half the investments in early 2025. Homes led with $800 million, while offices saw fresh energy, especially in new development projects where global players team up with local builders. Retail and mixed-use developments also surged, taking over 30% of the total—up sharply from just 7% a year ago.
Colliers highlighted India’s rise to fourth place worldwide for land and development investments in H1 2025, climbing from seventh the previous quarter. Seven Asia-Pacific markets now rank in the global top 10, showing the region’s pull.
“India’s star is rising in Asia-Pacific real estate, fueled by strong demand across all types of properties,” noted Vimal Nadar, National Director and Head of Research at Colliers India. He added that smart policies, better returns compared to other markets, and a hunger for varied assets will keep the money coming. The back half of 2025 looks solid, with growth in staples like offices and homes, plus hot new areas such as data centers, senior living, and life sciences.
Across the wider Asia-Pacific region, real estate investments hit $71.9 billion in the first half, down 6% from last year amid global economic jitters. Offices claimed 36% of that, while retail jumped 13%. India and Australia stood out as favorites for foreign capital, unlike other spots where local money dominated.
Colliers sees brighter days ahead for India real estate inflows in late 2025, driven by calmer rates, trust in top assets, and fresh chances in alternative investments.
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