Japanese property dealers are significantly expanding their footprint in the Indian real estate market, drawn by low construction costs and rising demand for premium residential and office spaces.
The Leading developer Mitsui Fudosan, which entered India in 2020 via a partnership with Bengaluru-based RMZ Real Estate, is reportedly planning to invest another $190-225 million in upcoming Indian projects. Meanwhile, another leading Japanese developer, Sumitomo Realty & Development, has already committed more than $6.5 billion across five major projects in Mumbai. Moreover, they are searching for land near the soon-to-open Navi Mumbai Airport for further investment.
It’s worth noting that Japan isn’t the only country interested in the real estate of India. One of the US’s biggest investment firms, Blackstone, has also invested significantly in Indian real estate. With almost half of its $50 billion investment in real estate, Blackstone has emerged as India’s biggest commercial landlord.
What sets Japanese firms apart from many foreign investors is their willingness to take on construction risk, leveraging India’s comparatively low labour and material costs. This allows them to build premium office complexes at a fraction of the cost compared with cities such as Tokyo, London, or New York.
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The push comes amid surging demand for high-end commercial real estate in India. Rents for premium office spaces in key areas such as Mumbai’s Bandra Kurla Complex (BKC) rose by more than 14% in the third quarter of 2025. Industry sources suggest that this combination of strong rent growth and low build costs makes India an attractive long-term bet for Japanese property players.
As these Japanese firm increase their investments and begin ground-up construction, rather than simply acquiring an existing property, India’s real estate can emerge as the most promising in the world.
