Japanese property developers like Mitsui Fudosan and Sumitomo Realty are significantly increasing investment in India's
booming real estate market. This surge, driven by established trust with local partners and India's high growth
potential, is expanding beyond traditional segments into logistics, data centers, and more, attracting substantial
Japan's biggest property developer Mitsui Fudosan could put fresh investment of 30-35 billion yen ($190-$225 million) or
more into Indian property projects, Reuters has reported, citing information from sources. Mitsui Fudosan entered India
in 2020, partnering with local developer RMZ Real Estate to build an office complex in Bengaluru.
RMZ Real Estate declined to comment but CEO Avnish Singh told Reuters that Japanese developers are kicking into higher
gear now that trust with local partners has been established. "The floodgates can open and have opened," he said.
Also Read: Japanese property giants deepen their push into a booming Indian market
Sumitomo Realty and Development, Japan's No.3 developer which describes Mumbai as its second engine of growth after
Tokyo, has already committed $6.5 billion across five projects in the city, including two sites added this year. Sources
told Reuters it is also scouting for land around a soon-to-be operational Navi Mumbai city airport for new investment.
Other Japanese developers in the Indian market include Daibiru Corp, which started with investments in office deals in
two cities last year. It is now scouting for land and could even look at developing residential buildings and data
centres, Anand Jayaraman, South Asia CEO of its parent Mitsui O.S.K. Lines, told Reuters.
Japanese investors are not the only ones chasing gains in the Indian property market. US investment firm Blackstone is
India's biggest commercial landlord, and roughly half of its $50 billion in Indian assets are in real estate.
Also Read: Top 28 listed realty firms sell Rs 92,500 cr worth properties in Apr-Sep
India is emerging as one of Asia Pacific’s most promising real estate investment markets, as fresh capital platforms,
deeper institutional participation, and broader asset-class expansion reshape the landscape. ET has recently reported
new funds such as PRIME Office Fund, Artha Global Opportunities, DRA–Balajadia, and SGRE reflect growing confidence,
with domestic and global investors accelerating deployments across core and alternative assets ahead of 2026.
Foreign investors are deploying large amounts of capital into Indian real estate because India offers a rare combination
of high growth potential, rising demand across residential, commercial and logistics segments, and real-asset stability,
all wrapped in a maturing but still under-penetrated real-estate market. For global investors seeking long-term value,
inflation hedging and exposure to emerging-market growth, Indian real estate strikes a compelling balance of risk and
Looking beyond traditional real estate
Capital flows into India are widening across asset classes as investors diversify beyond traditional office and
residential segments. Logistics, data centres, industrial parks, senior living, land acquisition vehicles, and
development-focused strategies are drawing greater institutional interest. The expansion of purpose-built platforms and
specialised funds signals a maturing ecosystem, where private equity firms, sovereign funds, and domestic institutions
are committing capital across income-yielding assets as well as build-to-core and value-add opportunities.
Foreign investors dominated institutional investments with 54% share in 2024, accounting for USD 3.7 billion, despite a
sharp reduction in share from 65% in 2023, according to Vestian Research. Industrial & Warehousing saw an increase of
190% YoY (39% of total inflows), as per a government report.
India shines as focus shifts to APAC
As per Colliers’ 2026 Global Investor Outlook, a decisive shift is on toward Asia Pacific (APAC), with investors
re-entering global real estate markets with renewed confidence. The report, based on proprietary research and a global
survey of institutional investors, notes improving fundamentals, stabilising pricing, and returning liquidity across
major markets. APAC’s rising prominence reflects its strong economic fundamentals, innovation-led growth, and 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, according to PERE, with India emerging as a key beneficiary of this shift.
While markets such as Japan, Australia, and Singapore remain top destinations for cross-border capital, investors are
increasingly turning to India for higher returns and scalable deployment opportunities. India’s strengthening
macroeconomic position, expanding digital infrastructure, and robust development pipeline have further elevated its
position within APAC’s investment landscape. Both domestic and offshore investors are positioning themselves to
capitalise on the deepening pool of institutional-grade assets.
Foreign investors will continue to bet on India
Global investors continue to view India as one of APAC’s most promising real estate destinations, supported by
favourable demographics, a stable policy environment, and rising consumption levels.
Cross-border participation is gaining momentum, enhanced by stronger equity markets, REIT expansions, and new IPO
activity. Investors are actively deploying capital across land and development assets, data centres, industrial and
logistics parks, office and residential projects, and emerging specialised segments.
“Investments in India’s real estate sector have demonstrated remarkable resilience, underscoring the depth of the market
and growing investor confidence. We foresee annual investments to the tune of USD 5–7 billion each in 2025 and 2026,
driven by a balanced interplay of foreign and domestic investors. Indian real estate continues to benefit from
structural demand levers such as robust domestic economic growth, rising urbanisation, infrastructure augmentation, and
rising consumption levels," said Badal Yagnik, Chief Executive Officer & Managing Director, Colliers India.
"As investors increasingly align with India’s long-term growth story, both domestic and offshore capital are expected to
gain further momentum in the coming quarters. Overall investment sentiment remains optimistic, with expanding foreign
investor participation, particularly from the US and Asia-Pacific regions, reflecting India’s continued appeal as a
high-potential, resilient real estate market,” Yagnik said.
Institutional investments in Indian real estate totalled USD 4.3 billion in the first nine months of 2025, supported by
steady momentum across the first three quarters. Office and residential are expected to contribute nearly 60% of
full-year investments, 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, as per the report.
“Building on the momentum of 2025, India’s real estate investment landscape is poised for a stronger 2026, underpinned
by robust demand across core assets and a deepening pipeline of institutional-grade supply," said Vimal Nadar, National
Director & Head of Research, Colliers India. "Office and residential segments will continue to dominate the investments,
driving over half of the total inflows, while the Industrial & Logistics segment will likely see renewed momentum. Among
alternative assets, data centres are likely to see increased investments, driven by the rapid expansion of digital
infrastructure and hyperscale demand. Cross-border capital will continue to remain a critical driver, as India
consolidates its position as one of the emerging destinations for stable, long-term real estate investment in the APAC
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