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Capital investment in Indian real estate increased 25% year-on-year to $14.3 billion in 2025, driven by strong inflows into land, development sites, and office assets, according to CBRE. Mumbai emerged as the top investment destination with a 24% share, followed by Bengaluru at 20% and Delhi-NCR at 11%, while Hyderabad led quarterly inflows in Q4. Developers accounted for the largest share of investments, supported by rising domestic capital participation and steady foreign interest, indicating sustained momentum for the sector heading into 2026.
The October–December quarter alone saw inflows of $3.3 billion, marking an increase of nearly 30% compared to the same period last year. This steady acceleration underlines how capital investment in Indian real estate has evolved into a long-term growth story rather than a cyclical rebound.
Strong Annual Performance Anchored by Major Metros
Mumbai emerged as the top destination for capital investment in Indian real estate during 2025, accounting for 24% of total inflows. Bengaluru followed with a 20% share, while Delhi-NCR captured 11% of overall investments for the year.
These three markets together formed the backbone of real estate capital deployment, driven by robust residential demand, office absorption, and large-scale development opportunities. Their continued dominance highlights investor preference for cities offering depth, liquidity, and long-term scalability.
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Hyderabad Leads Q4 Investment Activity
While Mumbai and Bengaluru led annual inflows, Hyderabad stood out in the final quarter of 2025. The city attracted 21% of total capital investment during Q4, making it the top-performing market for the quarter.
Delhi-NCR followed closely with a 19% share, while Bengaluru accounted for 15% of quarterly inflows. The strong Q4 showing reflects how capital investment in Indian real estate is spreading beyond traditional leaders, with investors increasingly diversifying across high-growth urban centres.
Land and Development Assets Dominate Investor Interest
Land parcels and development sites remained the most preferred asset class, accounting for over 46% of total capital investment in Indian real estate during 2025. In Q4 alone, this segment contributed approximately 45% of all inflows.
Built-up office assets ranked second, drawing nearly 28% of annual investments and about 24% in the fourth quarter. Warehousing assets and development platforms also saw rising traction, signalling a broader diversification in investor strategies across commercial, logistics, and mixed-use developments.
Developers Take the Lead in Capital Deployment
Developers played a central role in driving capital investment in Indian real estate, accounting for 47% of total investments during the year. Institutional investors followed with a 30% share, reinforcing the growing participation of organised capital.
More than 60% of funds deployed in land and development transactions were directed toward residential and office projects. Mixed-use and warehousing developments also attracted meaningful capital, reflecting changing urban consumption patterns and infrastructure growth.
Domestic Capital Strengthens Market Stability
One of the defining trends of 2025 was the increasing dominance of domestic capital. CBRE noted that Indian investors contributed nearly 80% of total capital inflows during Q4, underscoring growing confidence among local developers and institutions.
In the final quarter, developers accounted for 46% of investments, followed by institutional investors at 29% and REITs at 14%. This shift highlights how capital investment in Indian real estate is becoming more self-sustaining, supported by strong domestic balance sheets.
Foreign Investors Remain Selectively Active
Despite the growing role of domestic capital, foreign participation remained steady. Canadian investors accounted for 52% of foreign inflows in Q4, while US-based investors contributed 26%.
The quarter also witnessed the creation of investment and development platforms worth approximately $440 million, spanning residential and office segments. These platform deals point to a preference for structured partnerships and long-term capital commitments rather than one-off transactions.
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Market Outlook: Momentum Expected to Continue
Industry experts believe the underlying fundamentals supporting capital investment in Indian real estate remain intact. Development-led investments, improving regulatory clarity, and expanding domestic capital pools are expected to drive continued momentum into 2026.
Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa, highlighted that the sector’s evolution reflects growing depth and maturity. The combination of domestic strength and consistent foreign interest positions India favourably for sustained real estate investment growth.
Conclusion
The 25% jump in capital investment in Indian real estate to $14.3 billion in 2025 marks a significant milestone for the sector. With Mumbai, Bengaluru, and Delhi-NCR leading annual inflows and emerging markets like Hyderabad gaining ground, investor confidence remains strong. As development activity intensifies and capital structures become more sophisticated, Indian real estate appears well-positioned to build on this momentum in the coming years.
Ans 1. Capital investment in Indian real estate rose 25% year-on-year to $14.3 billion in 2025, driven by strong inflows into land, development sites, and office assets.
Ans 2. Mumbai led annual inflows with a 24% share, followed by Bengaluru at 20% and Delhi-NCR at 11%. Hyderabad emerged as the top-performing city in Q4 2025, attracting 21% of quarterly capital.
Ans 3. Investors showed the strongest interest in land parcels and development sites, which accounted for over 46% of total capital inflows. Built-up office assets were the second most popular, drawing nearly 28% of annual investments.
Ans 4. Developers accounted for the largest share at 47% of total investments, followed by institutional investors at 30%. Domestic capital dominated, contributing nearly 80% of Q4 inflows, while foreign investors remained selectively active.
Ans 5. Canadian investors contributed 52% of foreign inflows in Q4 2025, and US-based investors added 26%, with several structured platform deals indicating a preference for long-term commitments.
Ans 6. Mixed-use developments and warehousing assets saw rising traction, reflecting diversification in investor strategies and evolving urban infrastructure needs.
Ans 7. Increasing confidence among local developers and institutions, stronger balance sheets, and supportive regulatory frameworks have strengthened domestic participation, making the market more self-sustaining.
Ans 8. Experts expect momentum to continue, supported by development-led investments, expanding domestic capital pools, and consistent foreign interest. Major metros and emerging markets like Hyderabad are likely to remain key investment destinations.
Ans 9. Indian real estate investment has shifted from cyclical patterns to long-term growth, with greater domestic participation, more sophisticated capital structures, and rising interest in structured platform deals.
Ans 10. The 25% rise to $14.3 billion shows strong investor confidence, highlighting opportunities in land, development sites, and office assets, while signalling continued growth and urban expansion across major Indian cities.