Mumbai
Asia Pacific (APAC) investors are increasingly optimistic about Indian real estate, with nearly 68% expecting positive regional economic growth to boost investment in the sector. According to a report on Friday, India is set to see a surge in institutional real estate investments in 2025, building on a strong performance in 2024. APAC countries accounted for 28% of all institutional investments in Indian real estate during the first three quarters of this year.
The report highlights that 69% of APAC investors plan to allocate over 30% of their global assets to real estate in the next five years, with India positioned to attract both domestic and foreign institutional capital. Since 2021, institutional inflows into Indian real estate have totaled $19 billion, with investment volumes growing each year.
The office sector has driven over 40% of these inflows between 2021 and 2024, and is expected to remain a dominant force in 2025, bolstered by strong demand from global capability centers (GCCs) and domestic businesses. The industrial and warehousing sectors are also experiencing accelerated growth, thanks to the rise of e-commerce and third-party logistics companies. Additionally, residential sales are robust, driven by end-user demand.
Vimal Nadar, Senior Director at Colliers India, noted that alternative sectors like data centers, senior living, and student housing will continue to see strong investment opportunities, reflecting evolving demographic and consumption trends.