India leads real estate investment momentum in Asia-Pacific: Report

New Delhi: Institutional investments worth $5-7 billion are projected be made each in 2025 and 2026 in the Indian real estate sector by foreign and domestic investors due to robust domestic economic growth, rising urbanisation and infrastructure augmentation, a report said on Friday.

APAC-focused capital raising has surged over 130 per cent since 2024, representing 11 per cent of global fundraising in Q1–Q3 2025, the report from real estate services firm Colliers said.

Regarding the Indian real estate market, Vimal Nadar, National Director and Head of Research, Colliers India said, “Industrial and Logistics segment will likely see renewed momentum. Amongst alternative assets, the data centres are likely to see increased investments, driven by the rapid expansion of digital infrastructure and hyperscale demand.”

Cross-border capital will continue to remain a critical driver, as India consolidates its position as one of the emerging destinations for stable, long-term real estate investment in the APAC region, he added.

Office and residential assets are expected to contribute nearly 60 per cent of investment in 2025, driven by sustained occupier activity and a healthy supply pipeline. with industrial and logistics and data centres also drawing interest.

Equity markets are further enhancing liquidity and creating alternate investment opportunities through REITs and IPOs, which are further fuelling cross-border participation in Indian real estate.

Global investors are re‑entering real estate markets pursuing diversification across regions and segments and shifting allocations to Asia Pacific, with India emerging as a favoured destination, the report said.

The survey of institutional investors found that market fundamentals are improving, liquidity is returning, and pricing expectations are normalising on a global level.

While established markets such as Japan, Australia and Singapore remain popular, emerging markets, particularly India, are gaining attention as destinations for higher returns.

Institutional investments in Indian real estate have remained resilient, totalling $4.3 billion during the first nine months of 2025, supported by steady momentum through the first three quarters, said the report.

IANS