Foreign investors step up investments in Indian real estate

Japanese giants Mitsui & Sumitomo boost investments in Indian real estate, driven by growth, urbanisation, demand for offices, housing & data centres

India’s real estate sector is witnessing a surge in foreign interest, particularly from major Japanese developers such as Mitsui Fudosan and Sumitomo Realty. With India’s economy expanding at a robust pace, rapid urbanisation, and rising demand across offices, housing, logistics parks, and data centres, the country has become a preferred destination compared to slower-growing, saturated property markets abroad.

Foreign developers view India as a long-term growth opportunity. Many have already established trust through joint ventures with local partners, which has paved the way for deeper engagement. Significantly, investment is no longer confined to traditional office or residential projects. It is now spreading into warehouses, industrial parks, and data centres—sectors that are vital for the booming e‑year investment pipelines rather than short-term deals. This inflow of capital is expected to elevate the quality of projects, introduce global design and sustainability standards, and enhance the overall maturity of India’s property market.

The growing participation of international developers underscores India’s transformation into a global real estate hotspot. As foreign capital flows diversify into new asset classes, the sector is poised to benefit from improved professionalism, innovation, and resilience—strengthening its role in supporting India’s urban and economic growth story.

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