Domestic Capital Fuels Indian Real Estate Growth, Colliers Report Shows
Institutional investments in Indian real estate reached $4.3 billion in the first nine months of 2025, driven by domestic capital and strong demand in the office and residential segments.
Real EstateInstitutional InvestmentsDomestic CapitalOffice SegmentResidential DemandReal Estate NewsOct 07, 2025
The nine-month inflows remained above the five-year average of $4 billion during the January–September period, reflecting sustained investor confidence in the fundamentals of the Indian economy and real estate market. The 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, signalling 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 is the total institutional investment in Indian real estate for the first nine months of 2025?
The total institutional investment in Indian real estate for the first nine months of 2025 reached $4.3 billion.
What percentage of the total investment was made by domestic capital in the first nine months of 2025?
Domestic capital accounted for 60 per cent of the total institutional investment in the first nine months of 2025.
Which city led the investment activity in 2025 and what was its contribution?
Mumbai led the investment activity in 2025, contributing $0.8 billion, or 19 per cent of total inflows.
What segments of the real estate market saw the most investment activity in Q3 2025?
The office and residential segments saw the most investment activity in Q3 2025, with office assets representing over three-fourths of domestic investments.
How did institutional investments in the office segment perform in Q3 2025 compared to the same period in 2024?
Institutional investments in the office segment in Q3 2025 rose 27 per cent year-on-year to $0.8 billion.
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