Foreign Investment in Indian Real Estate Declines 16% to $3.65 Billion in 2025: Colliers
Institutional investments in Indian real estate rose 29% to a record $8.47 billion last year, despite a 16% drop in foreign fund inflow due to global uncertainties, according to Colliers India. The real estate consultant Colliers India released the data on institutional investments, showing that the inflow touched an all-time high of $8.47 billion in 2025, up from $6.56 billion in the preceding year.
As per the data, domestic investments more than doubled to $4.82 billion last year from $2.24 billion during 2024. However, foreign investments dipped 16% to $3.65 billion from $4.32 billion.
The institutional flow of funds includes investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs, and sovereign wealth funds. Colliers said that the data has been compiled based on available information in the public domain.
Office assets continued to attract the bulk of the investments, accounting for 54% of the annual inflows, followed by residential and industrial & warehousing assets, according to Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India.
Looking ahead, Yagnik said that institutional investments are expected to strengthen further, supported by expanding domestic capital, improving global risk appetite, and India's strong economic fundamentals.
Among different assets, India's office market witnessed a 94% increase in institutional investments to $4.53 billion last year from $2.33 billion in 2024. This growth underscores the continued confidence in the Indian real estate market, particularly in the office sector.
