THEBUSINESSBYTES.COM Fast. Focused. Future-ready
THEBUSINESSBYTES BUREAU
GURUGRAM, JUNE 11, 2025
Asia Pacific continues to dominate global capital flows, playing an increasingly influential role in cross-border investment trends, according to the latest Global Capital Flows – June 2025 report by Colliers.
The report highlights that Singapore, Japan, and Hong Kong were among the top 10 global sources of capital in Q1 2025, ranking fourth, seventh, and tenth, respectively. On the investment destination front, Japan and Australia featured prominently in the top 10 for standing assets. Notably, India retained its strong position, ranking seventh globally for cross-border capital inflows into land and development sites.
India’s growing appeal as an investment hub within the Asia Pacific region is attributed to its solid economic fundamentals, a maturing real estate sector, and heightened interest in land and development opportunities. Supportive policy frameworks and ongoing infrastructure development are further strengthening the country’s investment climate, attracting both global and regional capital.
“Institutional investments in Indian real estate reached a robust USD 1.3 billion in Q1 2025, marking a 31% year-on-year increase — highlighting the sector’s resilience and sustained investor confidence,” said Badal Yagnik, Chief Executive Officer, Colliers India. “Global and regional capital is flowing steadily into land and development assets, fueled by an evolving market and a wide range of investment opportunities. Increasing global investor interest in the residential sector, coupled with rising focus on emerging segments like life sciences and data centers, is poised to further bolster real estate investments in India. Meanwhile, strong demand fundamentals, a healthy supply pipeline, and expanding vehicles such as development platforms and alternative investment structures continue to create attractive prospects in commercial, industrial, and warehousing segments.”
Vimal Nadar, National Director & Head of Research at Colliers India, added: “Foreign investors accounted for nearly 40% of total institutional inflows in Q1 2025, reaffirming their long-term commitment to India’s real estate market. While office assets remain a key draw, residential investments are gaining momentum, driven by solid demand, attractive returns, and a positive macroeconomic outlook. This diversification signals a maturing market where foreign capital is aligning with India’s evolving real estate dynamics. Additionally, recent repo rate cuts bringing the benchmark lending rate down to 5.5% — the lowest in three years — are expected to further uplift investor sentiment and drive increased capital deployment, particularly in the residential sector in the near to medium term.”
The report also notes that Asia Pacific remains the most attractive region globally for land and development site investments. Seven out of the top 10 global markets for this asset class are in the region, with many maintaining or exceeding their five-year average activity share in Q1 2025. China leads the list, followed by Singapore, Australia, Malaysia, and India in fifth to seventh positions. Hong Kong and Japan round out the list at ninth and tenth places, respectively. Notably, China accounts for 80% of all cross-border investment activity in this category.
In terms of asset preferences across Asia Pacific, office properties continue to dominate investor interest, followed by industrial and retail assets. Globally, however, the multifamily sector emerged as the top investment choice.
Leave a Reply