India's Real Estate Attracts $4.7 Billion in Institutional Investment in 2025
Despite a 10% decline from the previous year, institutional investments in India's real estate are on track to make 2025 the second-best year on record. Discover the key trends and investor preferences shaping the market.
Real EstateInstitutional InvestmentMumbaiCommercial Real EstateMarket TrendsReal Estate NewsNov 11, 2025
Majority of the top seven cities have experienced a decline in investment, with Mumbai standing out as a bright spot, recording a 300% growth. This significant increase underscores the city's appeal to both domestic and foreign investors.
Domestic institutional participation has grown substantially over the past few years, now accounting for 48% of inflows between January and September, up from a smaller share previously. Foreign investors contributed the remaining 52%, helping to offset volatility in cross-border capital flows and strengthen the market’s stability.
Office assets remain the dominant choice for investors, accounting for 35% of year-to-date (YTD) inflows, followed by residential (26%), retail (12%), and logistics & industrial (9%). This distribution highlights the diverse opportunities available in the Indian real estate market.
Somy Thomas, executive managing director of Capital Markets at Cushman & Wakefield, commented, “India’s real estate investment landscape continues to demonstrate remarkable resilience and depth. Even amid global uncertainty, institutional capital has found stability in India’s strong economic fundamentals, robust domestic demand, and credible governance frameworks. The growing participation of domestic investors, who now contribute the majority share of quarterly inflows, underscores the market’s maturity and confidence in India’s long-term growth story.”
Foreign capital accounted for two-thirds (67%) of Mumbai’s inflows at $797.7 million, led by investors from the United States ($500 million) and Japan ($297 million). This signals strong confidence in the city’s fundamentals, even as global capital flows remain selective. Domestic investors contributed the remaining $398 million, further diversifying the capital base.
Institutional interest in Mumbai extended across various asset classes, reflecting the city’s increasingly diversified real estate ecosystem. The residential segment emerged as the primary recipient, attracting $377.6 million in inflows, largely driven by redevelopment projects. The office sector followed closely with $339.71 million, benefiting from continued occupier resilience and renewed leasing activity. The logistics and industrial segment received $269.3 million, underscoring the sector’s emergence as an alternative institutional play.
Meanwhile, mixed-use commercial projects, including office, hospitality, and other projects, saw inflows of $155 million. Data centers attracted $54.6 million, highlighting the widening investor appetite beyond traditional asset classes.
Overall, the Indian real estate market continues to attract significant institutional investment, driven by strong economic fundamentals and a diverse range of opportunities. The increasing participation of domestic investors is a positive indicator of the market’s stability and long-term growth potential.
Frequently Asked Questions
What is the total institutional investment in India's real estate in the first nine months of 2025?
The total institutional investment in India's real estate in the first nine months of 2025 was $4.7 billion.
Which city in India saw the highest growth in real estate investments?
Mumbai saw the highest growth in real estate investments, recording a 300% increase.
What percentage of the investment in Mumbai came from foreign investors?
Two-thirds (67%) of the investment in Mumbai came from foreign investors.
Which asset class is the most popular among investors in India's real estate market?
Office assets are the most popular, accounting for 35% of year-to-date inflows.
How much did the residential segment attract in Mumbai in terms of real estate investment?
The residential segment in Mumbai attracted $377.6 million in real estate investment.
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