Institutional Investments in Indian Real Estate Reach $4.3 Billion in 2025
Institutional investments in India's real estate sector reached $4.3 billion in the first nine months of 2025, driven by strong domestic capital. This underscores investor confidence in the Indian economy and real estate market.
Real EstateInstitutional InvestmentsIndian EconomyDomestic CapitalOffice AssetsReal EstateOct 07, 2025
The nine-months investment volumes remained above the average of $4 billion inflows in the January-September period of the last five years, according to a Colliers India report. The trend underscores ongoing investor confidence in the fundamentals of the Indian economy and real estate market.
This also reflects the cautious investor approach amid prevailing global headwinds, trade frictions, and other external volatilities. “Institutional investments in Indian real estate touched $1.3 billion in Q3 2025 — an 11 per cent increase year-on-year (YoY). This reflects continued investor confidence in India’s economic fundamentals and resilience of the real estate sector,” said Badal Yagnik, Chief Executive Officer, Colliers India.
Domestic institutional capital surged 52 per cent year-on-year to $2.2 billion, signifying the growing depth of institutional investors in Indian real estate. Domestic capital contributed 60 per cent of the quarterly inflows, with strong interest in office and residential segments. Notably, office assets accounted for over three-fourths of the domestic investments during the quarter, indicating a continued appetite for both ready and developmental commercial properties.
“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,” said Yagnik.
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, the report noted.
Institutional inflows in the office segment touched $1.5 billion in the first nine months of 2025, almost at par with the levels seen in the corresponding period of 2024, driving 35 per cent of the inflows in the year so far. “After a relatively subdued first half, institutional investments in India’s office segment rebounded strongly in Q3 2025, rising 27 per cent year-on-year to $0.8 billion. Office assets accounted for over 60 per cent of total quarterly inflows, led by notable acquisitions of ready commercial properties, particularly in Chennai and Pune,” said Vimal Nadar, National Director and Head of Research, Colliers India.
At $0.8 billion inflows, Mumbai drove 19 per cent of the total investments in 2025, led by deals in office and residential assets, followed by Bengaluru.
Frequently Asked Questions
What was the total institutional investment in Indian real estate in the first nine months of 2025?
The total institutional investment in Indian real estate in the first nine months of 2025 was $4.3 billion.
How much did domestic institutional capital contribute to the investment in the real estate sector?
Domestic institutional capital contributed $2.2 billion to the investment in the real estate sector, a 52 per cent increase year-on-year.
Which city led the institutional investments in the real estate sector in 2025?
Mumbai led the institutional investments in the real estate sector in 2025 with $0.8 billion in inflows, followed by Bengaluru.
What percentage of the quarterly inflows did office assets account for?
Office assets accounted for over 60 per cent of the total quarterly inflows.
What is the outlook for institutional investments in Indian real estate in the near-term?
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.
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