India's real estate sector attracts record $9.5bn foreign investment in Q3

India's real estate sector has attracted unprecedented foreign capital, with inflows reaching $9.5 billion in the third quarter, marking a significant milestone for the country's property market. The surge reflects growing confidence among international investors in India's long-term growth prospects and emerging infrastructure opportunities.

Foreign investors accounted for approximately 59 per cent of total capital inflows during the period, underscoring the substantial role of overseas funding in driving the sector's expansion. This influx of international capital has been complemented by strong participation from domestic institutional investors, who contributed roughly 79 per cent of overall inflows, demonstrating a robust appetite for real estate among India's financial institutions and large-scale domestic investors.

Data centre demand has emerged as a primary catalyst for the investment surge, as technology companies and multinational corporations accelerate their digital infrastructure expansion across India. The increasing need for computing power and cloud services has positioned data centres as a critical asset class, attracting both foreign and institutional capital seeking stable, long-term returns.

The record inflows signal renewed momentum in India's real estate market following earlier periods of volatility, with investors increasingly viewing the sector as a hedge against inflation and a vehicle for portfolio diversification. Industry observers attribute the strong performance to India's expanding digital economy, favourable regulatory environment, and growing corporate demand for modern commercial real estate.