Domestic Capital Fuels Indian Real Estate Growth: Colliers Report
Institutional real estate investments in India reached $4.3 billion in the first nine months of 2025, driven by domestic capital and robust demand in the office and residential segments, according to a Colliers India report.
Real EstateInstitutional InvestmentsDomestic CapitalOffice SegmentColliers IndiaReal EstateOct 07, 2025
The nine-month inflows surpassed the five-year average of $4 billion during the January–September period, reflecting sustained investor confidence in India's economic fundamentals and the real estate market. This trend also indicates a cautious investor approach amid global headwinds, trade frictions, and external market volatilities.
“Institutional investments in Indian real estate touched $1.3 billion in Q3 2025, marking an 11 per cent year-on-year increase. This demonstrates continued investor confidence in India’s economic fundamentals and the resilience of the real estate sector,” said Badal Yagnik, CEO of Colliers India.
Domestic institutional capital surged 52 per cent year-on-year to $2.2 billion, highlighting the growing depth of domestic investors in the sector. Domestic funds accounted for 60 per cent of quarterly inflows, with strong interest in both office and residential segments. Notably, office assets represented over three-fourths of domestic investments in the quarter, signaling sustained demand for ready and developmental commercial properties.
“With sustained demand across core asset classes and increasing depth of domestic capital, investment momentum is likely to hold steady, even as global headwinds may keep foreign investors cautious in the near-term,” Yagnik added.
The report noted that while domestic institutions are expected to remain a reliable source of capital, global investors are likely to maintain a cautious stance amid evolving economic conditions and stricter cross-border capital regulations.
Institutional inflows into the office segment reached $1.5 billion in the first nine months, almost matching levels seen during the same period in 2024 and contributing 35 per cent of total inflows so far this year.
“After a relatively subdued first half, institutional investments in India's office segment rebounded strongly in Q3 2025, rising 27 per cent year-on-year to $0.8 billion. Office assets accounted for over 60 per cent of total quarterly inflows, led by notable acquisitions of ready commercial properties, particularly in Chennai and Pune,” said Vimal Nadar, National Director and Head of Research at Colliers India.
Mumbai led the investment activity in 2025, contributing $0.8 billion, or 19 per cent of total inflows, primarily through office and residential deals, followed by Bengaluru.
Frequently Asked Questions
What was the total institutional investment in Indian real estate in the first nine months of 2025?
Institutional investments in Indian real estate reached $4.3 billion in the first nine months of 2025.
What is the five-year average for institutional investments in Indian real estate?
The five-year average for institutional investments in Indian real estate is $4 billion.
How much did domestic institutional capital increase year-on-year in the first nine months of 2025?
Domestic institutional capital surged 52 per cent year-on-year to $2.2 billion.
Which city led the investment activity in 2025 and how much did it contribute?
Mumbai led the investment activity in 2025, contributing $0.8 billion, or 19 per cent of total inflows.
What percentage of total quarterly inflows did office assets account for in Q3 2025?
Office assets accounted for over 60 per cent of total quarterly inflows in Q3 2025.
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