Indian Real Estate Sees 16% Drop in Foreign Investment, Domestic Investments Surge
New Delhi, Jan 6 (PTI) Institutional investments in Indian real estate rose 29 per cent to a record USD 8.47 billion last year, despite a 16 per cent drop in foreign fund inflow due to global uncertainties, according to Colliers India.
Real estate consultant Colliers India released data showing that the inflow of institutional investments reached an all-time high of USD 8.47 billion in 2025, up from USD 6.56 billion in the preceding year.
Domestic investments more than doubled to USD 4.82 billion last year from USD 2.24 billion in 2024. However, foreign investments dipped 16 per cent to USD 3.65 billion from USD 4.32 billion in 2024.
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 noted that the data has been compiled based on available information in the public domain.
During the year, office assets continued to attract the bulk of the investments, accounting for 54 per cent of the annual inflows, followed by residential and industrial & warehousing assets, according to Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India.
India's office market witnessed a 94 per cent increase in institutional investments to USD 4.53 billion last year from USD 2.33 billion in 2024. This significant growth underscores the continued confidence in the Indian real estate sector, particularly in the office market.
Looking ahead, Yagnik said the institutional investments are expected to strengthen further, supported by expanding domestic capital, improving global risk appetite, and India's strong economic fundamentals. The resilience of the Indian real estate market, despite global uncertainties, highlights its potential as a robust investment destination.
The data from Colliers India provides a comprehensive overview of the institutional investment landscape in Indian real estate, offering valuable insights for investors, developers, and policymakers. The surge in domestic investments and the resilience of the office market are key indicators of the sector's growth potential and stability.
