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Real estate investments across nine key APAC markets including India— totaled $ 71.9 billion in H1 2025, reflecting a 6% year-on-year decline amid global headwinds and trade uncertainties, according to Colliers’ latest report Investment Insights H1 2025 (link).The other markets like- Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan were impacted. However, the activity is expected to strengthen in the second half of 2025, supported by stabilizing interest rates, resilient domestic capital, and greater diversification in investment strategies across the region.Colliers also released its Global Capital Flows Report – September 2025, which highlights the top 10 global sources and destinations of cross-border real estate capital. The findings mentioned Asia Pacific’s rising influence, with Singapore, Japan, and Hong Kong ranking among the leading global capital sources in H1 2025. Other destinations, Japan and Australia featured in the top 10 for standing assets, underscoring sustained investor confidence in the region’s economic fundamentals and asset quality. Separately, seven APAC markets were included in the global top 10 destinations for land and development sites, with India taking the fourth position, underscoring its growing prominence in global real estate capital flows.“India continues to stand out as a promising country within Asia Pacific’s real estate investment landscape. Foreign investments remained strong at USD 1.6 billion and accounted for around 52% of the institutional investments in India during H1 2025. Interestingly, APAC investors accounted for over one-third of the foreign inflows into the country in the first half of the year, reiterating India’s strategic importance in cross-border capital flows,” said Badal Yagnik, Chief Executive Officer, Colliers India.With strong demand for high quality spaces, overhauling & simplification of GST regulations and anticipation of elevated consumption levels in the upcoming festive season, institutional investors are confident about their India exposure. “Real estate investments in 2025 are likely to end on a high note, with core assets like residential and office continuing to demonstrate high traction,” said Yagnik..Live EventsThe report mentioned that office assets remained the most attractive, accounting for 36% of total volumes, with South Korea and Japan leading activity. Retail investments also gained momentum, rising 13% YoY, largely driven by Australia, South Korea, and Mainland China. While industrial and logistics volumes softened overall, Taiwan recorded a 46% y-o-y surge in the segment.Domestic capital was the primary growth driver across most APAC markets, though offshore investors remained active in India and Australia. India stood out with $ 3 billion in inflows during H1 2025, a 15% YoY decline but still reflecting resilient investor interest. Notably, domestic capital surged 53% YoY, contributing 48% of total investments.In India, residential and office assets dominated, together driving more than half of total inflows. Residential investments led at $ 0.8 billion, while the office segment saw growing institutional activity, with investors increasingly acquiring development-stage assets through partnerships with local developers. Land acquisitions and early-stage construction financing also gained momentum. Within this backdrop, several landmark transactions defined the first half of the year. Welspun One, through its WOLP Fund 2, committed $ 229.4 million to multi-city industrial and warehousing projects, reinforcing the logistics backbone of the country. HDFC Capital Advisors and Eldeco Group launched a residential development platform with a $ 175 million investment, underscoring the strength of demand for mid-income housing. CapitaLand India Trust deployed $ 116 million into Maia Estates’ office development in Bengaluru, reflecting continued institutional confidence in Grade-A office assets. Meanwhile, Brookfield Group, via its subsidiary MOON Holdings DIFC, acquired land parcels in Mumbai valued at $ 70.1 million, reaffirming global investor appetite for India’s office-led growth story.“India’s prominence in the Asia Pacific region continues to grow, driven by strong demand traction across asset classes. Investor confidence is reflected in its rise to fourth place in cross-border capital deployment in land and development sites, up from seventh last quarter,” said Vimal Nadar, National Director & Head of Research, Colliers India. He added that the second half of 2025 is likely to remain strong, supported by core segments such as office and residential, along with growing allocations toward alternatives including data centers, senior living, and life sciences.Beyond India, APAC markets are seeing renewed investor appetite for income-generating retail assets, particularly in central and secondary business districts. Large-scale shopping centers in high-density locations are attracting capital as consumer sentiment improves. At the same time, mixed-use developments combining residential, retail, entertainment, and lifestyle offerings are gaining traction, boosting resilience and long-term value across the region.Lucy Mallick, International Capital Lead at Colliers said, “Investment volumes across global capital markets remained subdued in the first half of 2025. Despite this, Asia Pacific is showing signs of strategic resilience, with sectoral shifts and fundraising momentum that reflect evolving investor priorities. With inflation easing and stability in monetary policy across key markets, we expect capital flows to accelerate in the second half of 2025.”Add as a Reliable and Trusted News Source Add Now!
The second half of 2025 is expected to bring renewed momentum across key APAC markets. With yield spreads improving, investor confidence is set to strengthen across asset classes including alternative assets.(You can now subscribe to our Economic Times WhatsApp channel)

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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onAPAC real estate investmentIndia real estateColliers reportforeign investments in Indialand and development capital(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless