India’s real estate market is transitioning into a structurally stronger, investment-driven phase, supported by record equity capital inflows and broad-based demand across asset classes and geographies, according to a report by real estate services and investment firm CBRE.

Equity investments into the sector rose 14 per cent year-on-year to USD 10.2 billion in the first nine months of 2025 and are projected to reach USD 12–14 billion by year-end, marking the highest annual inflows ever recorded. The report underscores a shift from cyclical recovery to fundamentals-led growth, driven by sustained capital deployment, rapid digitisation and the emergence of future-ready development models across office, industrial, retail and residential segments, ANI reported.

Commenting on the outlook, Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE, said that the coming decade will be defined by future-ready development models. “The next decade would be led by those who design real estate as interoperable with plug-and-play capabilities for transit, logistics, digital infrastructure, and services. As a pivotal force driving India’s economic growth, the industry is set to play a transformative role in shaping the nation’s future and unlocking new avenues of progress,” he said.

The CBRE study highlighted that India’s real estate market is now anchored by strong structural fundamentals rather than cyclical trends. Sustained investments, rapid digitisation and access to larger capital pools have created a healthier balance between supply quality and volume across office, retail, industrial and residential segments.

The office sector continued its post-pandemic upswing in 2025, with gross leasing expected to exceed 80 million square feet for the full year. Leasing activity during January-September 2025 stood at 60 million square feet, the highest ever recorded for the first nine months of any year. Global Capability Centres (GCCs) remained the largest occupier group, accounting for an estimated 35-40 per cent of total office demand, reflecting long-term expansion plans by multinational corporations.

Industrial and logistics real estate also recorded steady growth, driven by third-party logistics and e-commerce players, while rising demand for Grade-A warehousing and multimodal connectivity supported rental growth across key markets. Retail real estate remained resilient, with experience-led expansion, strong demand from fashion and apparel brands, and increased interest from foreign retailers entering India.

On the investment front, land and development sites, along with the office sector, attracted nearly three-fourths of total equity inflows. Emerging segments such as data centres, hotels and healthcare assets witnessed a sharp rise in capital allocation, with investments into these segments increasing by around 55 per cent year-on-year.