Bengaluru leads real estate equity investment surge in Q1 2025

Bengaluru emerged as the frontrunner in real estate equity investments during the first quarter of 2025, surpassing Mumbai and Delhi-NCR, according to a report by CBRE India. Together, the three metropolitan cities attracted approximately 67% of the total capital inflows into the country’s real estate sector during the January–March period.

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The investment momentum was primarily driven by developers, who accounted for 46% of the total equity inflows. Real Estate Investment Trusts (REITs) followed with a 23% share, reflecting a significant increase from the previous quarter and highlighting growing institutional interest in built-up assets.

The strong inflow of capital underscores the resilience of the Indian real estate market amid global economic uncertainties. Demand remained robust across asset classes, with a notable shift in focus toward development-oriented investments. Residential and office segments, in particular, witnessed heightened investor attention.

The first quarter's performance signals a healthy pipeline for the rest of the year, especially in built-up office, warehousing, and alternative assets such as data centres and healthcare infrastructure.

With Bengaluru setting the pace, the Indian real estate sector appears poised for sustained expansion across both core and emerging asset classes.