Domestic Investors Pour $1.4 Billion into Indian Real Estate in First Half of 2025
Domestic capital investment in the Indian real estate sector surged by 53% to $1.4 billion in the first half of 2025, accounting for nearly half of the total inflows. This growth underscores the sector's resilience and the increasing role of domestic investors.
Real EstateDomestic InvestmentIndian MarketInstitutional InvestorsAsset ClassesReal Estate NewsJul 03, 2025
After a steady start in the first quarter, institutional investments in the Indian real estate market saw a notable uptick during the second quarter of 2025, reaching $1.7 billion, a 29% increase on a sequential basis. This brought the total investments in H1 2025 to $3.0 billion, reinforcing the sector’s strong performance.
The investment volume remained above the half-yearly average of about $2.6 billion since 2021, reflecting sustained investor interest in the Indian real estate market. The report highlighted that the growing share of domestic investments marks an ongoing shift in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across core asset classes.
Badal Yagnik, Chief Executive Officer of Colliers India, noted, “Domestic capital has emerged as a key driver in India’s real estate investments, with its share in total investments rising steadily from 16% in 2021 to 34% in 2024.” Over 60% of domestic investments during H1 2025 were directed towards residential and office assets, reflecting sustained confidence in these core segments.
As domestic capital deepens and diversifies, it is poised to bring greater stability and long-term confidence to India’s maturing real estate ecosystem, Yagnik added. Residential assets saw $0.8 billion of investments, driving 27% of the inflows during H1 2025, followed by office assets, which accounted for 24% of the total investments.
Investments in mixed-use assets also witnessed a significant surge, accounting for more than 20% of the total inflows during H1 2025, up from 7% share during the corresponding period in 2024. Retail and alternative assets also saw a notable rise in investment inflows, cumulatively accounting for $0.5 billion, led by select large deals in H1 2025.
Vimal Nadar, National Director and Head of Research at Colliers India, stated, “With REITs and other institutional players actively scouting for quality retail assets across key markets, investment activity in this segment is expected to gain further traction in the coming quarters.”
The report indicates that the Indian real estate market continues to attract significant domestic capital, driven by a combination of resilient economic conditions and growing investor confidence in core and alternative asset classes.
Frequently Asked Questions
What is the total domestic investment in Indian real estate in H1 2025?
The total domestic investment in Indian real estate in H1 2025 was $1.4 billion, marking a 53% increase from the previous year.
What percentage of total investments did domestic capital account for in H1 2025?
Domestic capital accounted for 48% of the total investments in the Indian real estate market in H1 2025.
Which asset classes saw the highest investment inflows in H1 2025?
Residential and office assets saw the highest investment inflows, with residential assets receiving $0.8 billion and office assets accounting for 24% of the total investments.
What is the significance of the growing share of domestic investments in the real estate sector?
The growing share of domestic investments marks a shift in the capital investment landscape, bringing greater stability and long-term confidence to the Indian real estate ecosystem.
What is the expected trend for retail asset investments in the coming quarters?
Investment activity in the retail segment is expected to gain further traction as REITs and other institutional players actively seek quality retail assets across key markets.
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