Increasing global investor participation in the residential segment, along with a growing appetite for emerging segments such as life sciences and data centres, are expected to further strengthen real estate investment in India. “At the same time, strong demand fundamentals, robust supply pipeline, and expanding avenues such as development platforms and alternative investment structures will continue to present compelling opportunities in commercial as well as industrial & warehousing segments,” says Yagnik.
Vimal Nadar, National Director & Head of Research, Colliers India, says foreign investors accounted for nearly 40% of the total institutional inflows during Q1 2025, reaffirming their long-term interest in Indian real estate. “While office assets remain a key focus for foreign investors, residential investments are gaining ground, driven by rising demand, healthy returns, and a positive domestic outlook.”
The diversification signals a maturing market where foreign capital is increasingly aligning with India’s evolving real estate landscape. “Looking ahead, consecutive repo rate cuts have brought the benchmark lending rate to 5.5%, the lowest in three years. This is likely to further boost investor sentiment and facilitate greater capital deployment across real estate asset classes, particularly the residential segment in the near to medium term,” says Nadar.
The global real estate fundraising rebounded strongly in 2025, with Q1 totals surpassing the past three years. An estimated $58 billion of new funds have been raised, representing almost half (44%) of 2024’s total. Over 60% of funds have exceeded targets in Q1, led by Blackstone, which contributed around 30% of activity via its largest European fund and latest debt strategy. Debt strategies attracted 33% of new capital raising in Q1, second only to opportunistic at 47%. In APAC, Japan is slowly raising rates as core inflation remains elevated, while South Korea, Australia and Singapore have begun cutting rates.
