India Ranks Among Top 10 Global Destinations for Cross-Border Investments

India's Growing Appeal for Global Investors

New Delhi, June 11: A recent report indicates that India remains a leading choice for cross-border investments in land and development, securing a spot in the top 10 globally.

The nation is establishing itself as a significant investment hub in the Asia Pacific region, bolstered by solid economic fundamentals, a developing real estate market, and increasing interest in land and development opportunities.

According to the report from Colliers, favorable government policies and ongoing infrastructure development are enhancing the investment landscape, making India more attractive to both global and regional investors.

While Japan and Australia are also recognized among the top 10 destinations for established assets, India holds the seventh position for cross-border capital in land and development.

“In the first quarter of 2025, institutional investments in Indian real estate reached an impressive $1.3 billion, marking a 31 percent increase from the previous year, which highlights the sector's resilience and the confidence of investors. There is a steady influx of global and regional capital into India, especially in land and development sectors, supported by a maturing market and varied investment opportunities,” stated Badal Yagnik, CEO of Colliers India.

The rising participation of global investors in the residential market, along with a growing interest in emerging sectors like life sciences and data centers, is expected to further enhance real estate investments in India.

“Additionally, strong demand fundamentals, a robust supply pipeline, and expanding options such as development platforms and alternative investment structures will continue to create attractive opportunities in both commercial and industrial & warehousing sectors,” Yagnik added.

Foreign investors represented nearly 40 percent of total institutional inflows in Q1 2025, reaffirming their sustained interest in the Indian real estate market.

While office properties remain a primary focus for foreign investors, there is a noticeable increase in residential investments, driven by rising demand, favorable returns, and a positive outlook for the domestic market.

“This diversification reflects a maturing market where foreign capital is increasingly aligning with India's evolving real estate landscape. Looking forward, recent repo rate cuts have lowered the benchmark lending rate to 5.5 percent, the lowest in three years,” noted Vimal Nadar, National Director & Head of Research at Colliers India.

This trend is likely to further enhance investor sentiment and encourage greater capital allocation across various real estate asset classes, particularly in the residential sector in the near to medium term.