Indian Real Estate Sees 33% Drop in Institutional Investments in Q2 CY25: Colliers Report
Institutional investments in Indian real estate declined by 33% to $1.7 billion in the second quarter of calendar year 2025 (Q2 CY25), according to a report by Colliers. While foreign investments dropped, domestic investments rose, cushioning the impact of global uncertainties.
Real EstateInstitutional InvestmentsColliersDomestic InvestmentsForeign InvestmentsReal Estate NewsJul 03, 2025
Domestic institutions stepped up their investments, which rose by 32% year-on-year (Y-o-Y) to $642.8 million. Conversely, foreign institutional investments declined by 49% to $1.04 billion, but they still constituted 62% of the total inflows. The report attributes this caution to an evolving macroeconomic scenario, credit flow, and inflationary pressures.
Institutional investments in the first half of 2025 stood at $3 billion, representing a 15% decrease Y-o-Y. While foreign investments fell by 39%, domestic capital surged by 53% to $1.4 billion, making up 48% of total inflows in H1 CY25.
“The growing dominance of domestic investments has helped cushion the impact of global uncertainties and push total investments to the $3 billion mark,” said Badal Yagnik, Chief Executive Officer of Colliers India. “Over 60% of domestic investments during H1 CY25 were directed towards residential and office assets, reflecting sustained confidence in 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,” he added.
Foreign capital, although slower, still accounted for over half of total inflows, with growing interest in mixed-use and retail assets. These two segments together comprised about 55% of foreign investments in H1 CY25.
Residential assets saw $0.8 billion in investments, driving 27% of the inflows during H1 CY25. Office assets followed with a 24% share. Investments in mixed-use assets also witnessed a surge, accounting for more than 20% of the total inflows during H1 CY25, up from 7% in H1 CY24. Retail and alternative assets also saw an increase in investment inflows, cumulatively accounting for $0.5 billion, led by select large deals in H1 CY25.
Mumbai attracted 22% of total investments in H1 CY25, and Bengaluru drew $0.5 billion, contributing nearly 17% to the total inflows.
Frequently Asked Questions
What was the overall decline in institutional investments in Indian real estate in Q2 CY25?
Institutional investments in Indian real estate declined by 33% to $1.7 billion in the second quarter of calendar year 2025 (Q2 CY25).
How did domestic institutional investments perform in Q2 CY25?
Domestic institutional investments rose by 32% year-on-year (Y-o-Y) to $642.8 million in Q2 CY25.
What was the share of foreign institutional investments in total inflows in Q2 CY25?
Foreign institutional investments constituted 62% of the total inflows in Q2 CY25, despite a 49% decline.
What was the trend in institutional investments in the first half of 2025?
Institutional investments in the first half of 2025 stood at $3 billion, down 15% Y-o-Y, with domestic capital surging by 53% to $1.4 billion.
Which cities attracted the most investments in H1 CY25?
Mumbai attracted 22% of total investments in H1 CY25, and Bengaluru drew $0.5 billion, contributing nearly 17% to the total inflows.
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