Institutional Investments in Indian Real Estate Soar 83% YoY in Q3 2025
Institutional investments in India’s real estate market surged to USD 1.76 billion in Q3 2025, up 83% year-on-year, with domestic funds driving 51% of the inflows. This highlights growing confidence in India’s real estate sector.
Institutional InvestmentsReal EstateIndiaCommercial Real EstateDomestic FundsReal Estate NewsOct 28, 2025
The commercial real estate segment dominated the landscape, drawing 79% of total investments worth USD 1.4 billion, up 104% year-on-year. This category, which includes offices, retail, co-working, and hospitality assets, outperformed all others by a wide margin. The residential sector attracted USD 192 million, accounting for 11% of the total inflow but slipping 49% sequentially. Meanwhile, the industrial and warehousing segment saw robust activity, surging 168% over the previous quarter to USD 86 million, driven by rising logistics demand.
A striking trend in Q3 2025 was the sharp shift toward domestic capital. The share of domestic institutional investments jumped to 51%, marking 115% annual and 166% quarterly growth, while foreign inflows fell to just 8%, the lowest in recent years. Interestingly, co-investments—partnerships between foreign and Indian investors—rose to 41% of total inflows, indicating a growing preference for collaborative funding models amid global economic uncertainty.
“Driven largely by commercial assets, institutional investments in Indian real estate surged 83% year-on-year, reaffirming the sector’s strong resilience amid global headwinds,” said Shrinivas Rao, FRICS, CEO of Vestian. “The increasing role of domestic investors highlights deepening confidence in India’s growth story and real estate fundamentals.”
Vestian noted that despite volatile global markets, India’s real estate investment outlook remains optimistic, buoyed by steady demand for Grade-A commercial spaces, expanding warehousing hubs, and maturing capital markets.
India’s real estate sector is steadily becoming a key pillar of the country’s economic growth. Its contribution to the national GDP has climbed from less than 5% in the early 2000s to around 6–8% today, and projections suggest it could rise to 14–20% by 2047 — potentially evolving into a USD 10 trillion growth driver.
A joint study by Colliers and CREDAI estimates that by the time India marks 100 years of Independence in 2047, the economy could reach USD 35–40 trillion. The report highlights four major forces steering this expansion — rapid urbanisation, accelerated infrastructure development, a surge in affordable housing demand, and widespread digital transformation — all of which are expected to reinforce the real estate sector’s long-term momentum.
Boilerplate: Vestian Research is a leading real estate analytics and advisory firm, providing comprehensive insights and strategic recommendations to investors, developers, and policymakers. For more information, visit [Vestian's website](https://www.vestian.com).
Frequently Asked Questions
What was the total institutional investment in Indian real estate in Q3 2025?
The total institutional investment in Indian real estate in Q3 2025 was USD 1.76 billion.
Which segment of the real estate market saw the highest investment in Q3 2025?
The commercial real estate segment saw the highest investment, drawing 79% of total investments worth USD 1.4 billion.
How much did domestic institutional investments increase year-on-year in Q3 2025?
Domestic institutional investments increased by 115% year-on-year in Q3 2025.
What is the projected contribution of the real estate sector to India's GDP by 2047?
The real estate sector is projected to contribute 14–20% to India's GDP by 2047.
What are the four major forces driving the expansion of India's real estate sector?
The four major forces driving the expansion of India's real estate sector are rapid urbanisation, accelerated infrastructure development, a surge in affordable housing demand, and widespread digital transformation.
Related News Articles
The Hamptons: A Real Estate Agent's Guide to the Hottest Spots This Summer
From Sagaponack to Southampton, a real-estate agent shares his insider knowledge on the best places to see and be seen in the Hamptons this summer.
Ayodhya's Real Estate Boom: Fractional Ownership Platform Closes ₹10.40 Crore Land Deal
The Indian fractional ownership market is taking a leap forward, making high-value real estate accessible to a broader audience through fractional ownership and property tokenization.
India's Rise to Global Economic Superpower: Unlocking Investment Potential
India's Golden Era, Global Investment, Economic Superpower, Adani BT India@100 Summit
Luxury and Sustainability in Tier-2 Cities: Real Estate Prospects in 2025
India’s primary housing market is expected to witness a moderate single-digit price rise in 2025, following a significant 21% surge in 2024. Industry experts attribute this trend to strong demand and limited supply, with a growing focus on sustainability
RBI Rate Cut: Potential Savings on Your Home Loan EMI for a Rs 30 Lakh Loan Over 20 Years
The recent RBI rate cut is expected to boost the real estate market and potentially save home loan borrowers a significant amount on their EMIs. Sandeep Mangla, Managing Director of Forteasia Realty Pvt. Ltd, shares insights on the impact.
Can India Meet the Power Demand for AI Data Centres by 2030?
India is facing a significant challenge in meeting the power and real estate demands for AI-driven data centres by 2030. According to recent reports, the country will need an additional 40-50 TWH of electricity and 45-50 million square feet of real estate to support this growth.