Institutional Investments in Indian Real Estate Reach $80 Billion Since 2010
India's real estate sector has attracted nearly $80 billion in institutional investments over the past 15 years, marking a significant evolution in the market. By 2047, the sector is projected to reach a market size of $5-10 trillion.
Real EstateInstitutional InvestmentIndiaMarket GrowthReitsReal Estate NewsSep 13, 2025
India's real estate sector has attracted nearly USD 80 billion in institutional investments over the past 15 years since 2010, highlighting the sector's evolution into a preferred asset class for both global and domestic investors, according to a joint report by Colliers-CREDAI.
Foreign capital continues to dominate, contributing 57 per cent of total inflows during these years, the report said. Interestingly, domestic capital has been emerging as a key driver post-pandemic, indicating a substantial shift in the investment landscape across asset classes.
The report notes that the institutional flow of funds comprises investments from family offices, foreign corporate groups, pension funds, private equity players, sovereign wealth funds, NBFCs, listed REITs, and real estate fund-cum-developers. These capital infusions were supported by some of the recent progressive policy reforms, including the Real Estate (Regulation and Development) Act (RERA), Goods and Services Tax (GST), and the introduction of Real Estate Investment Trusts (REITs), all of which have enhanced transparency, efficiency, and institutional participation.
By the centennial year of Independence in 2047, India's real estate sector could scale up to a market size of USD 5-10 trillion, up from current levels of around USD 0.3 trillion, according to the Colliers-Credai report. India's real estate sector has evolved significantly, from a largely fragmented and unorganised sector in the 1990s to a more transparent and accountable growth driver today. Over the years, its contribution to India's Gross Domestic Product (GDP) has steadily increased from less than 5% before 2010 to around 6-8% in recent years. The sector contributed nearly USD 0.3 trillion in terms of value added to the Indian economy in 2025.
Another emerging trend in the Indian real estate sector is investments through REITs. Indian REITs deliver about 6-7 per cent yields, surpassing global benchmarks, according to a joint report. As per the definition, REITs, or real estate investment trusts, can be described as a company that owns and operates real estate to generate income.
Frequently Asked Questions
What is the total institutional investment in Indian real estate since 2010?
The total institutional investment in Indian real estate since 2010 is nearly USD 80 billion.
What percentage of the total inflows is contributed by foreign capital?
Foreign capital contributes 57 per cent of the total inflows in Indian real estate.
What are some of the key policy reforms that have supported real estate investments in India?
Key policy reforms include the Real Estate (Regulation and Development) Act (RERA), Goods and Services Tax (GST), and the introduction of Real Estate Investment Trusts (REITs).
What is the projected market size of India's real estate sector by 2047?
By 2047, India's real estate sector is projected to reach a market size of USD 5-10 trillion.
What are the yields of Indian REITs compared to global benchmarks?
Indian REITs deliver about 6-7 per cent yields, which surpass global benchmarks.
Related News Articles
Union Budget 2024-25: Real Estate Sector's Expectations for Growth and Stability
Industry leaders highlight the need for enhanced tax incentives, simplified project approvals, and incentives for affordable housing to drive growth and stability in the real estate sector.
Pune Techie's Tragic Demise: Harassment by Manager Leads to Suicide
A young software engineer in Pune took his own life due to alleged harassment by his manager, sparking outrage in the city's IT community.
Nexus Select Trust Reports 7% Increase in Net Operating Income to Rs 413 Crore in Q1FY25
Nexus Select Trust, a listed REIT backed by retail real estate, reports 7% increase in net operating income to Rs 413 crore in Q1FY25, with plans to raise up to Rs 1,700 crore through issue of commercial papers and debentures.
Government Weighs Proposals to Reconsider Indexation Benefits for Real Estate Transactions
The government is reviewing proposals to remove indexation benefits for real estate transactions, considering a dual long-term capital gains tax regime.
Festive Season Sees Surge in Online Property Search Activity
Online property search activity rises by 10% in August, with 2BHK units being the most searched across India, according to a report by Housing.com.
Avadhoot Gupte and Wife Purchase 1357 Sq Ft Apartment in Mumbai’s Khar for ₹7.75 Crore
Mumbai real estate update: Renowned singer Avadhoot Gupte and his wife have made a significant investment in the bustling Khar area, acquiring a spacious 1357 sq ft apartment for a total of ₹7.75 crore. The property is situated in the prestigious Rustomje