M
itsui Fudosan, Japan’s largest property developer, is poised to inject an additional 30‑35 billion yen (about $190‑$225 million) into Indian projects, Reuters reports, citing unnamed sources. The company entered India in 2020, teaming up with RMZ Real Estate to build an office complex in Bengaluru. RMZ declined to comment, but CEO Avnish Singh told Reuters that Japanese developers are accelerating activity now that trust with local partners has been established, saying “the floodgates can open and have opened.”
Sumitomo Realty & Development, Japan’s third‑largest developer, regards Mumbai as its second growth engine after Tokyo. It has already earmarked $6.5 billion for five projects in the city, including two new sites added this year. Sources also say the firm is scouting land around the soon‑to‑open Navi Mumbai airport for further investment.
Other Japanese players are expanding their footprints. Daibiru Corp began with office deals in two cities last year and is now looking for land, with the possibility of residential and data‑centre developments, according to Anand Jayaraman, South Asia CEO of its parent Mitsui O.S.K. Lines.
Japanese interest is not the only foreign push. U.S. investment firm Blackstone is India’s largest commercial landlord, holding roughly half of its $50 billion Indian portfolio in real estate. The country is becoming one of Asia‑Pacific’s most attractive real‑estate markets, driven by new capital platforms, deeper institutional participation, and a broader asset‑class mix ahead of 2026. Funds such as PRIME Office Fund, Artha Global Opportunities, DRA–Balajadia, and SGRE illustrate growing confidence, with domestic and global investors accelerating deployments across core and alternative assets.
India offers a rare blend of high growth potential, rising demand in residential, commercial, and logistics sectors, and real‑asset stability, all within a maturing yet under‑penetrated market. For long‑term investors seeking inflation hedging and exposure to emerging‑market growth, Indian real estate presents a compelling risk‑reward balance.
Capital flows into India are diversifying beyond traditional office and residential projects. Logistics, data centres, industrial parks, senior living, land acquisition vehicles, and development‑focused strategies are attracting greater institutional interest. The rise of purpose‑built platforms and specialised funds signals a maturing ecosystem, with private equity firms, sovereign funds, and domestic institutions committing capital to both income‑yielding assets and build‑to‑core/value‑add opportunities.
Foreign investors dominated institutional investments in 2024, holding 54 % of the share (USD 3.7 billion) despite a decline from 65 % in 2023, according to Vestian Research. Industrial & Warehousing inflows surged 190 % YoY, accounting for 39 % of total inflows, per a government report.
Colliers’ 2026 Global Investor Outlook highlights a decisive shift toward Asia‑Pacific (APAC). Investors are re‑entering global real‑estate markets with renewed confidence, citing improving fundamentals, stabilising pricing, and returning liquidity. APAC’s prominence reflects strong economic fundamentals, innovation‑led growth, and an expanding middle class, with capital raising in the region surging more than 130 % since 2024. APAC now accounts for 11 % of global fundraising in the first nine months of 2025, with India emerging as a key beneficiary.
While Japan, Australia, and Singapore remain top destinations for cross‑border capital, investors increasingly turn to India for higher returns and scalable deployment opportunities. India’s strengthening macroeconomic position, expanding digital infrastructure, and robust development pipeline further elevate its standing within APAC’s investment landscape. Both domestic and offshore investors are positioning themselves to tap the deepening pool of institutional‑grade assets.
Colliers India’s CEO & Managing Director Badal Yagnik notes that India’s real‑estate sector has shown remarkable resilience, with annual investments projected at USD 5–7 billion in 2025 and 2026, driven by a balanced mix of foreign and domestic capital. Structural demand levers—robust domestic growth, rising urbanisation, infrastructure augmentation, and increasing consumption—continue to support the market.
Institutional investments in Indian real‑estate reached USD 4.3 billion in the first nine months of 2025, with steady momentum across the first three quarters. Office and residential assets are expected to account for nearly 60 % of full‑year inflows, backed by active occupier demand and a healthy supply pipeline. Transaction closures are likely to pick up in the final quarter, reinforcing expectations of USD 5–7 billion in annual inflows.
Vimal Nadar, National Director & Head of Research at Colliers India, projects a stronger 2026, underpinned by robust demand across core assets and a deepening pipeline of institutional‑grade supply. Office and residential segments will continue to dominate, driving over half of total inflows, while Industrial & Logistics is expected to regain momentum. Among alternative assets, data centres are likely to see increased investment, driven by rapid digital infrastructure expansion and hyperscale demand. Cross‑border capital will remain a critical driver as India consolidates its position as a stable, long‑term real‑estate investment destination in the APAC region.
