India Real Estate Attracts Billions Amid Global Headwinds

India's real estate sector is anticipated to attract substantial institutional investments, with projections indicating $5-7 billion for both 2025 and 2026. This follows a strong performance in 2024, where investments reached $6.5 billion, reflecting a significant 22% year-on-year growth. The market's stability and depth are attracting both foreign and domestic investors, even amidst global trade frictions.

The office and residential segments are expected to be the primary drivers of investment in 2025, collectively accounting for approximately 60% of the total inflows. This growth is supported by sustained demand from occupiers and a healthy pipeline of new developments. India's appeal to global investors, particularly from the US and Asia-Pacific, is strengthened by its robust economic growth, increasing urbanization, and positive demographic trends.

Alternative asset classes like data centers are also poised for increased investment due to the expansion of digital infrastructure. While office and residential properties will continue to dominate, the industrial and logistics sectors may witness renewed momentum. Cross-border capital remains a key factor, reinforcing India's position as a stable, long-term real estate investment destination in the Asia-Pacific region.