Seven APAC markets, including India, dominate the list of the top 10 global cross-border capital destinations in land and development sites. Institutional investments in Indian real estate remain resilient in Q1 2025 at $1.3 bn, with foreign investments’ share at 40%
India continues to be in the top 10 global cross-border investment destinations for land and development sites within APAC, driven by strong fundamentals, a maturing real estate market, and growing interest in land and development assets, according to a new report from real estate investment management company Colliers.
Colliers’ Global Capital Flows June 2025 report shows the Asia Pacific remains the most attractive region for land and development sites, with seven of the top 10 markets, most of which maintained or improved their five-year average share of activity in Q1 this year.
China and Singapore top the list, followed by Australia, Malaysia and India in fifth to seventh position. Hong Kong and Japan came in at ninth and tenth position. China maintains a market dominance of 80% in all cross-border activity. At the same time, the office segment continues to be the most sought-after in Asia Pacific, followed by industrial and retail, despite multifamily being the top sector of choice globally.
The institutional investments in Indian real estate stood at $1.3 billion in Q1 2025—up 31% YoY—underscoring the sector’s resilience and investor confidence. “Global and regional capital continues to flow steadily into India, particularly in land & development assets, supported by a maturing market and diverse capital deployment opportunities,” said Badal Yagnik, Chief Executive Officer, Colliers India.
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.
