India leads real estate investment momentum in Asia-Pacific: Report

New Delhi, Nov 21: Foreign and domestic institutional investors are projected to channel $5-7 billion annually into India’s real estate sector through 2025-2026, driven by strong economic expansion, accelerating urbanization, and infrastructure development.

Asia-Pacific capital mobilization has grown over 130% since early 2024, accounting for 11% of global real estate funding between Q1-Q3 2025.

Vimal Nadar, Colliers India’s National Director and Research Head, commented: “Industrial and logistics assets will regain investment momentum. Within alternative assets, data centers show strong potential due to expanding digital ecosystems and hyperscale operator demand.”

International capital flows will remain vital as India strengthens its position as Asia-Pacific’s emerging hub for stable, long-term real estate investments.

Office spaces and residential projects are anticipated to attract nearly 60% of 2025 investments, supported by consistent tenant demand and new developments, while industrial logistics and data centers gain investor attention.

Real estate investment trusts (REITs) and public market listings are improving liquidity while creating alternative investment avenues that attract global capital to Indian assets.

Global investors are returning to property markets seeking regional diversification, with many shifting allocations toward Asia-Pacific as India emerges as a preferred market.

Market analyses indicate improving fundamentals across global real estate, with liquidity recovery and price stabilization underway.

While mature markets like Japan, Australia, and Singapore maintain their appeal, developing markets—particularly India—are attracting investors seeking enhanced returns.

Institutional investments in Indian properties reached $4.3 billion during 2025’s first nine months, demonstrating sustained momentum through three consecutive quarters.

–IANS