Indian Real Estate Capital Inflows Surge 25% to $14.3B in 2025; Mumbai, Bengaluru & Delhi-NCR Lead, Hyderabad Emerges Q4 Star
India’s real estate sector recorded a strong revival in 2025, with capital inflows rising 25% year-on-year to $14.3 billion, underscoring renewed investor confidence across asset classes and geographies. According to CBRE’s India Market Monitor Q4 2025 Investments report, sustained demand in Tier-1 cities and a maturing investment ecosystem fueled this growth, marking one of the most robust years for institutional and developer-led participation.
Mumbai remained the top investment destination, capturing 24% of total annual inflows due to its depth, liquidity, and resilient demand across residential, commercial, and redevelopment projects. Bengaluru followed with a 20% share, supported by strong office absorption and tech-driven expansion. Delhi- NCR contributed 11%, backed by infrastructure upgrades, expanding housing corridors, and increasing commercial traction.
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Hyderabad emerged as the fastest-growing investment hotspot in Q4 2025, accounting for 21% of quarterly inflows. The city’s availability of large land parcels, consistent office leasing momentum, and competitive development economics attracted both domestic developers and global institutional players, positioning it as a high-growth metro for future residential and commercial projects.
Land and development sites dominated investments, forming 46% of total 2025 inflows and 45% in Q4, reflecting a clear tilt toward long-term development strategies. Stabilized office assets remained the second-largest segment at 28% annually. Over 60% of land investments were directed toward residential and office projects, while warehousing and mixed-use platforms continued gaining traction.
Domestic developers led the capital wave with 47% of total annual investments, highlighting growing local financial strength. Institutional investors accounted for 30%, while REIT participation rose notably to 14% in Q4. Nearly 80% of Q4 capital came from Indian investors, with Canadian and American entities contributing the bulk of foreign inflows. With structured development platforms and strong urban demand, India is poised for sustained real estate investment momentum in 2026.
