According to a survey released on Wednesday, India is among the top 10 international cross-border investment destinations for land and development sites. Strong foundations, a maturing real estate market, and rising interest in land and development assets are all contributing factors to the nation’s rise as a major Asia Pacific investment destination.

According to the Colliers research, favorable legislative initiatives and ongoing infrastructure development are strengthening the investment climate and bolstering India’s appeal to both domestic and foreign investors.

India maintained its prominent position at number seven in the top ten global cross-border capital destinations for land and development sites, while Japan and Australia were in the top ten for standing assets.

In Q1 2025, institutional investments in Indian real estate totaled a robust $1.3 billion, up 31% year over year, demonstrating the industry’s tenacity and investor confidence. Due to a maturing market and a variety of capital deployment options, international and regional capital is still flowing steadily into India, especially in the form of land and development assets, according to Colliers India CEO Badal Yagnik.

Real estate investment in India will be further strengthened by rising interest in developing markets like data centers and life sciences as well as more engagement from international investors in the residential segment.

“Yet, there will still be attractive prospects in the commercial and industrial & warehousing sectors due to solid demand fundamentals, a strong supply pipeline, and growing channels like development platforms and alternative investment structures,” Yagnik continued.

Nearly 40% of all institutional inflows in Q1 2025 came from foreign investors, underscoring their long-standing interest in Indian real estate.

Residential investments are growing in popularity due to growing demand, high returns, and a favorable domestic outlook, even though office assets continue to be a top priority for international investors.

The market is maturing, and foreign money is increasingly matching India’s changing real estate market, as indicated by this diversification. The benchmark loan rate has dropped to 5.5%, the lowest level in three years, as a result of successive repo rate reduction, according to Vimal Nadar, National Director & Head of Research at Colliers India.

In the short to medium term, this is probably going to help increase capital deployment across real estate asset classes, especially the residential segment, and further improve investor sentiment, he added.