India’s real estate sector enters investment-led growth phase; inflows seen at $12–14 bn in FY26: CBRE

New Delhi, December 18, 2025: India’s real estate market is moving into a structurally stronger, investment-driven phase, supported by record equity inflows and expanding demand across asset classes and regions, according to a report by global real estate consultancy CBRE.

Equity capital inflows into the sector rose 14% year-on-year to $10.2 billion during January–September 2025, the highest ever for the period. CBRE estimates total investments could reach $12–14 billion by FY26, marking a new annual peak for the industry.

The report said the sector’s growth is increasingly anchored in long-term structural fundamentals rather than cyclical recovery. Sustained capital deployment, rapid digitisation, and access to larger domestic and global capital pools have improved supply quality and depth across office, retail, industrial, and residential segments.

The office market maintained strong momentum in 2025, with gross leasing expected to cross 80 million sq ft for the full year. Leasing activity during the first nine months stood at 60 million sq ft, the highest ever recorded for the period. Global Capability Centres (GCCs) continued to dominate demand, accounting for 35–40% of total office leasing.

Industrial and logistics assets also saw steady growth, driven by third-party logistics and e-commerce players. Demand for Grade-A warehousing and better multimodal connectivity supported rental growth in key markets. Retail real estate remained resilient, backed by experience-led formats, expansion by fashion and apparel brands, and rising interest from international retailers entering India.

On the investment side, office assets and land/development sites together attracted nearly three-fourths of total equity inflows. Capital allocation to emerging segments such as data centres, hotels, and healthcare assets rose sharply, increasing by around 55% year-on-year.

CBRE also highlighted the growing role of tier-II and tier-III cities, where investments jumped 58% year-on-year to about $879 million. Cities including Ahmedabad, Indore, Coimbatore, Panipat, and Ludhiana saw increased investor interest due to improved infrastructure and deeper consumption markets.

The residential sector remained buoyant, supported by steady sales, new launches, and rising demand for premium and luxury housing. CBRE said the sector’s strong fundamentals position it to play a significant role in India’s long-term economic growth.