Strong Demand, REIT Interest Drive Capital Inflows in Real Estate Sector
New Delhi, April 11 – India's real estate sector recorded a significant surge in equity funding during the January–March 2025 quarter, with investments soaring by 74% year-on-year to approximately USD 2.9 billion, according to data released by real estate consultancy CBRE.
In comparison, total equity investments stood at USD 1.7 billion during the same period last year.
Developer Activity and REITs Propel Growth
CBRE attributed this sharp rise in investment inflows to heightened developer activity and increased institutional interest, particularly from Real Estate Investment Trusts (REITs). The renewed investor appetite highlights a growing confidence in India’s property market despite prevailing global economic uncertainties.
“India's real estate sector continues to demonstrate resilience and attract sustained investor interest despite global headwinds,”
— Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE
Land and Office Assets Dominate Capital Allocation
According to CBRE’s report, land and development sites along with built-up office assets together accounted for nearly 74% of total equity investments during Q1 2025. This indicates a strong investor preference for scalable and income-generating assets.
Positive Outlook for 2025
Magazine added that the sector’s fundamentals remain robust, with strong demand across asset classes and rising confidence from both domestic and international investors.
“With structural shifts in occupier preferences and evolving market dynamics, we expect this positive momentum to continue across core and emerging segments throughout the year,” he noted.
The upbeat sentiment bodes well for the Indian real estate landscape, as it continues to attract capital and fuel growth across commercial and residential domains.
