India Realty Sees Record Equity Inflows in 2025
Real Estate

India Realty Sees Record Equity Inflows in 2025

India’s real estate market is entering a structurally stronger and more investment-led phase, with equity capital inflows hitting record levels and demand broadening across asset classes and geographies, according to a report by CBRE.

Equity inflows into the sector rose 14 per cent year-on-year to a record USD 10.2 billion during the first nine months of 2025. Total investments are expected to reach USD 12–14 billion by the end of the year, marking the highest annual inflows ever recorded for Indian real estate.

Commenting on the outlook, Anshuman Magazine, Chairman and CEO for India, South-East Asia, the Middle East and Africa at CBRE, said the next decade would be shaped by future-ready development models. He noted that real estate designed with plug-and-play capabilities for transit, logistics, digital infrastructure and services would lead growth, positioning the sector as a key driver of India’s long-term economic transformation.

The report highlighted that the market is now anchored in strong structural fundamentals rather than cyclical trends. Sustained investment flows, rapid digitisation and access to deeper capital pools have helped create a healthier balance between supply quality and scale across office, retail, industrial and residential segments.

The office sector continued its post-pandemic recovery in 2025, with gross leasing expected to exceed 80 million square feet for the full year. Leasing during January–September 2025 reached 60 million square feet, the highest ever for the first nine months of any year. Global Capability Centres remained the largest occupier group, accounting for an estimated 35–40 per cent of total office demand, reflecting long-term expansion plans by multinational companies.

Industrial and logistics real estate recorded steady growth, driven by third-party logistics and e-commerce players. Rising demand for Grade A warehousing and improved multimodal connectivity supported rental growth across key markets. Retail real estate also remained resilient, aided by experience-led expansion, strong demand from fashion and apparel brands, and increased interest from foreign retailers entering India.

On the investment side, land and development sites, along with office assets, attracted nearly three-fourths of total equity inflows. Emerging segments such as data centres, hotels and healthcare assets saw a sharp increase in capital allocation, with investments rising by around 55 per cent year-on-year.

The report also underscored the growing importance of non-metro markets. Investments in tier-II and tier-III cities surged 58 per cent year-on-year to about USD 879 million, led by cities including Ahmedabad, Indore, Coimbatore, Panipat and Ludhiana. This reflects improving infrastructure, deeper consumption markets and rising investor confidence beyond traditional tier-I hubs.

The residential sector remained buoyant, supported by steady sales, new launches and rising demand for premium and luxury housing. With strong fundamentals across segments, CBRE said India’s real estate sector is well positioned to play a critical role in the country’s long-term growth trajectory.

India’s real estate market is entering a structurally stronger and more investment-led phase, with equity capital inflows hitting record levels and demand broadening across asset classes and geographies, according to a report by CBRE. Equity inflows into the sector rose 14 per cent year-on-year to a record USD 10.2 billion during the first nine months of 2025. Total investments are expected to reach USD 12–14 billion by the end of the year, marking the highest annual inflows ever recorded for Indian real estate. Commenting on the outlook, Anshuman Magazine, Chairman and CEO for India, South-East Asia, the Middle East and Africa at CBRE, said the next decade would be shaped by future-ready development models. He noted that real estate designed with plug-and-play capabilities for transit, logistics, digital infrastructure and services would lead growth, positioning the sector as a key driver of India’s long-term economic transformation. The report highlighted that the market is now anchored in strong structural fundamentals rather than cyclical trends. Sustained investment flows, rapid digitisation and access to deeper capital pools have helped create a healthier balance between supply quality and scale across office, retail, industrial and residential segments. The office sector continued its post-pandemic recovery in 2025, with gross leasing expected to exceed 80 million square feet for the full year. Leasing during January–September 2025 reached 60 million square feet, the highest ever for the first nine months of any year. Global Capability Centres remained the largest occupier group, accounting for an estimated 35–40 per cent of total office demand, reflecting long-term expansion plans by multinational companies. Industrial and logistics real estate recorded steady growth, driven by third-party logistics and e-commerce players. Rising demand for Grade A warehousing and improved multimodal connectivity supported rental growth across key markets. Retail real estate also remained resilient, aided by experience-led expansion, strong demand from fashion and apparel brands, and increased interest from foreign retailers entering India. On the investment side, land and development sites, along with office assets, attracted nearly three-fourths of total equity inflows. Emerging segments such as data centres, hotels and healthcare assets saw a sharp increase in capital allocation, with investments rising by around 55 per cent year-on-year. The report also underscored the growing importance of non-metro markets. Investments in tier-II and tier-III cities surged 58 per cent year-on-year to about USD 879 million, led by cities including Ahmedabad, Indore, Coimbatore, Panipat and Ludhiana. This reflects improving infrastructure, deeper consumption markets and rising investor confidence beyond traditional tier-I hubs. The residential sector remained buoyant, supported by steady sales, new launches and rising demand for premium and luxury housing. With strong fundamentals across segments, CBRE said India’s real estate sector is well positioned to play a critical role in the country’s long-term growth trajectory.

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