India’s realty sector set for $5-7-bn inflows in 2025-26

India’s realty sector set for $5-7-bn inflows in 2025-26
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Hyderabad: Globalreal estate investors are regaining confidence and preparing for stronger capital deployment in 2026, according to Colliers’ newly released 2026 Global Investor Outlook Report. The survey-based study indicates that improving market fundamentals, returning liquidity and stabilising pricing expectations are encouraging investors to diversify across geographies and asset classes.

A major trend highlighted in the report is a decisive global capital pivot toward Asia Pacific (APAC), underpinned by the region’s innovation-led growth, expanding middle class and sustained wealth creation. APAC-focused capital raising has risen more than 130 per cent since 2024, now accounting for 11 per cent of global fundraising in the first three quarters of 2025. While established hubs such as Japan, Australia and Singapore continue to dominate, emerging markets- particularly India- are increasingly attracting global institutional interest.

India Strengthens Its Position as a High-Return Investment Hub

India has emerged as one of the most attractive APAC markets for large-scale capital deployment, driven by favourable demographics, policy stability, and a strong economic outlook. Investors are displaying heightened interest in land and development assets, while India’s deepening institutional-grade stock is drawing both domestic and international capital.

“Investments in India’s real estate sector have shown remarkable resilience,” said Badal Yagnik, CEO & Managing Director, Colliers India. “We expect annual investments of $5–7 billion in both 2025 and 2026, supported by structural growth drivers such as urbanisation, infrastructure expansion and rising consumption.”

Institutional investments in India reached $4.3 billion in the first nine months of 2025, with the office and residential segments accounting for nearly 60 per cent of projected full-year inflows. Colliers expects a stronger 2026, fuelled by rising demand across core assets and increased activity in industrial & logistics and alternative sectors such as data centres.

“The office and residential markets will continue to dominate investments, while the industrial & logistics sector will gain momentum,” said Vimal Nadar, National Director & Head of Research, Colliers India. “Data centres are set for accelerated growth, driven by digital infrastructure expansion and hyperscale requirements.”

APAC Investment Outlook: Office, Logistics and Retail Gain Traction

Survey findings reveal that 64 per cent of APAC investors expect improved economic growth in 2026, with nearly 60 per cent optimistic about liquidity and rental performance. Family offices and high-net-worth individuals are becoming more active, particularly in Hong Kong and Australia, where pricing opportunities are emerging.

Australia remains a leading magnet for global capital, driven by political stability and strong fundamentals.

Japan’s Tokyo and Osaka continue to dominate cross-border activity in the office and multifamily sectors.

China is seeing domestic investors favour income-generating assets such as malls, rental housing, data centres and senior living.

Singapore remains a core investment hub with strong competition for prime office and data centre assets.

Across APAC, the industrial & logistics sector leads investor interest, especially in Australia, India and Japan. ‘Big box’ warehousing and last-mile logistics top the priority list, while cold storage facilities are gaining traction. The office segment is seeing renewed demand amid positive rental growth, and retail assets—particularly neighbourhood centres and high-street locations—are drawing investor attention as supply stabilises.

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