India among fastest-growing real estate investment markets in Asia: Colliers

Real estate investment across the Asia Pacific (APAC) region rebounded strongly in 2025, reaching $162 billion, an 8 per cent year-on-year increase, according to the latest Asia Pacific Investment Insights March 2026 report by Colliers. The growth was largely driven by stronger momentum in the second half of the year as buyers and sellers aligned their pricing expectations.

Investment activity accelerated significantly during the latter half of the year, with $87.3 billion recorded in H2 2025, marking an 11 per cent annual increase and a 17 per cent rise compared with the first half of the year. The rebound highlights renewed investor confidence across nine major APAC markets including Australia, Hong Kong, India, Japan, Mainland China, New Zealand, Singapore, South Korea and Taiwan.

Among these markets, South Korea, Japan and Singapore led overall investment volumes. However, Singapore and India recorded the strongest year-on-year growth, with investment volumes rising 35 per cent and 29 per cent respectively, reflecting improving market fundamentals and expanding investment opportunities.

Sector-wise, office assets remained the dominant investment class across the region. Investments in office properties rose 21 per cent year-on-year to $58.5 billion, accounting for 36 per cent of total real estate investments in 2025. The growth was supported by sustained occupier demand for high-quality assets and limited new supply in prime central business districts.

The industrial and logistics sector ranked second with $30.1 billion in investments, although activity moderated slightly from the strong levels seen in 2024. Meanwhile, retail investments increased 15 per cent year-on-year to $29.7 billion, driven by improving asset performance and stronger consumer sentiment. Alternative asset classes emerged as the fastest-growing segment, surging 191 per cent, reflecting rising institutional interest in portfolio diversification.

The recovery was supported by robust domestic capital flows, which continued to anchor investment activity across most APAC markets. Cross-border participation also remained resilient in key gateway markets such as Hong Kong, Singapore and India.

According to Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India, India continued to strengthen its position as a key investment destination within the APAC region.

“India recorded one of the strongest growth rates in real estate investments among the nine major APAC markets in 2025. While domestic capital continues to drive investments across the region, India has witnessed relatively stronger cross-border capital movement, with foreign investors accounting for 43 per cent of the $8.5 billion inflows during the year,” he said.

Looking ahead, institutional investments in Indian real estate are expected to remain robust in 2026, supported by strong economic growth prospects and sustained demand for high-quality assets, although global economic headwinds and trade negotiations will remain key factors to monitor.

Vimal Nadar, National Director – Research at Colliers India, noted that office assets continue to be the preferred segment for institutional investors across most APAC markets, including India.

“In India alone, office investments reached about $4.5 billion in 2025, accounting for over half of the total institutional inflows. Platform deals and partnerships between global investors and domestic developers are expected to gain traction, enabling large-scale capital deployment and reinforcing India’s position as a key office investment market in APAC,” he said.

At the regional level, Theo Novak, Managing Director – Capital Markets & Investment Services, Asia Pacific at Colliers, said the market is moving from a phase of caution to renewed investor conviction.

“Investors are prioritising clarity, quality assets and markets with deep capital pools. While office properties continue to provide scale and income stability, there is also a clear acceleration toward alternative assets and selective retail as investors rebalance portfolios,” he said.

Looking ahead, Colliers expects APAC real estate investment momentum to strengthen further in 2026, supported by stabilising interest rates, easing inflation and improving financing conditions. Domestic capital is likely to remain the primary driver of transactions, while cross-border investment is expected to gradually recover as investor confidence improves.