India Ranks Among Top Global Destinations for Cross-Border Investments in 2025

India's Investment Landscape in 2025

According to a recent report by a global professional services firm, India remains a significant player in the top 10 global destinations for cross-border capital focused on land and development sites in 2025. The Asia Pacific region continues to dominate the global investment landscape, playing a crucial role in capital movements.

The report titled 'Global Capital Flows June 2025' indicates that in the first quarter, China and Singapore led as the primary sources of global capital, with Australia, Malaysia, and India following closely behind in fifth to seventh positions.

India is increasingly recognized as a vital investment hub within the Asia Pacific, bolstered by strong economic fundamentals, a developing real estate market, and heightened interest in land and development opportunities. Supportive policy initiatives and ongoing infrastructure development are further enhancing the investment environment, making India attractive to both global and regional investors.

Investment Trends and Insights

In the first quarter of 2025, institutional investments in Indian real estate reached an impressive $1.3 billion, marking a 31% increase compared to the previous year. This growth highlights the sector's resilience and the confidence investors have in it.

Badal Yagnik, CEO of Colliers India, noted that both global and regional capital is consistently flowing into India, particularly in land and development sectors. The maturing market and diverse investment opportunities are attracting increased participation from global investors, especially in residential properties and emerging sectors like life sciences and data centers. The strong demand fundamentals and a robust supply pipeline are creating attractive prospects in commercial, industrial, and warehousing segments.

Foreign investors represented nearly 40% of total institutional inflows in Q1 2025, reaffirming their sustained interest in the Indian real estate market. While office properties remain a primary focus, there is a growing trend towards residential investments, driven by increasing demand and favorable returns. This diversification reflects a maturing market where foreign capital is aligning with India's evolving real estate dynamics.

Looking ahead, recent repo rate cuts have lowered the benchmark lending rate to 5.5%, the lowest in three years, which is expected to enhance investor sentiment and encourage more capital deployment across various real estate asset classes, particularly in the residential sector.