Indian Real Estate Sees 9% Decline in Institutional Investment in 2025: Colliers Report
The Colliers report indicates a 9% year-over-year decline in institutional investment in the Indian real estate sector in the first half of 2025, reflecting cautious investor sentiment amid global tensions.
Real EstateInstitutional InvestmentColliersForeign InvestorsDomestic InvestorsReal Estate NewsOct 07, 2025
The report stated that the investment decline in 2025 reflects the cautious investor approach amid prevailing global tension, trade conflicts, and other external volatilities. While the 9 per cent YoY dip seems large, Colliers suggests that this could be due to a large base in 2024 during the same period.
In the last five calendar years, the average institutional investment in the real estate sector has been $4 billion in January and September. The total institutional investment from January to September 2025 was $4.3 billion, the report added.
Badal Yagnik, Chief Executive Officer, Colliers India, says that the current trend reflects continued investor confidence in India’s economic fundamentals and the resilience of the real estate sector.
“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 shows that investment inflows in the real estate sector reflected a balanced mix of domestic and foreign capital. The foreign investments in the sector declined by 36 per cent YoY to $2.1 billion in 2025.
While the foreign investors remain cautious on the Indian real estate market, the domestic institutional investment surged 52 per cent YoY to $2.2 billion, underlining the growing depth of domestic institutional investors in Indian real estate.
Just 4 years ago, foreign investors dominated the Indian real estate market. The Colliers report shows that the foreign institutional investors’ share in the real estate sector was 84 per cent in 2021. The ongoing structural shift underscores the increasing significance of domestic investors.
“Looking ahead, while domestic institutions are expected to remain a steady source of capital, global investors are likely to maintain a cautious stance in the near-term, amid evolving global economic narrative and stricter cross-border capital deployment,” Colliers says.
As per the Colliers data, institutional investment in the office segment increased 27 per cent to $779.9 million during July-September, from $616.3 million in the same period a year earlier.
On the other hand, the investment in the residential segment dipped 17 per cent to $319.7 million in the third quarter of this calendar year, from $384.8 million in the corresponding period of the preceding year.
Frequently Asked Questions
What was the percentage change in institutional investment in the Indian real estate sector in the first half of 2025?
The institutional investment in the Indian real estate sector saw a 9 per cent year-over-year decline in the first half of 2025.
What factors contributed to the decline in institutional investment in 2025?
The decline in institutional investment in 2025 reflects the cautious investor approach amid prevailing global tensions, trade conflicts, and other external volatilities.
How did the foreign institutional investment in the Indian real estate sector change in 2025?
The foreign institutional investment in the Indian real estate sector declined by 36 per cent year-over-year to $2.1 billion in 2025.
What was the trend in domestic institutional investment in 2025?
The domestic institutional investment in the Indian real estate sector surged by 52 per cent year-over-year to $2.2 billion in 2025.
How did the investment in the office segment perform in the third quarter of 2025?
The institutional investment in the office segment increased by 27 per cent to $779.9 million in the third quarter of 2025, compared to the same period in the previous year.
Related News Articles
Pune's Nightlife Takes a Hit: Under-25s Barred from Popular Clubs
Following the Porsche accident case
Domestic Abuse in Pune: Woman Abducted by Husband and In-Laws, Police Investigation Underway
A shocking incident of domestic violence has come to light in Pune, where a woman was kidnapped by her husband and in-laws, sparking a police investigation.
Schneider Electric Revolutionizes India's Real Estate Market with Innovative Solutions
Schneider Electric unveiled pioneering Home Energy Management Solutions at BuildCon 2024, catering to India's growing demand for smart and sustainable homes.
US Real Estate Mogul Brandon Miller's Shocking Debt Revealed After Tragic Death
Brandon Miller, a wealthy real estate developer, had only $8,000 in his bank account despite owing $34 million in debt. His financial struggles were largely due to his lavish lifestyle and massive loans on his Hamptons mansion.
PVR INOX to Shut Down 70 Underperforming Screens in FY25
The company plans to explore the potential monetisation of non-core real estate assets located in prime areas, including Mumbai, Pune, and Vadodara.
Real Estate Slump in Indore During Diwali: High Prices and Excess Inventory Dampen Sales
Despite the festive season of Diwali, real estate sales in Indore remain sluggish, primarily due to high property prices and an oversupply of inventory.