Institutional Investments in Real Estate Surge 11% to $1.27 Billion in Q3: Colliers
Institutional investments in Indian real estate witnessed a 11% growth to $1.27 billion in the July-September quarter, driven by robust inflows into office assets, according to data from Colliers India. This indicates continued investor confidence in India's economic fundamentals and the resilience of the real estate sector.
Real EstateInstitutional InvestmentsColliers IndiaOffice AssetsResidential SegmentReal Estate MumbaiOct 07, 2025
Real estate consultant Colliers India reported that institutional investments in real estate increased to $1.269.5 million during July-September, up from $1.148.7 million in the year-ago period. This growth underscores the ongoing interest from both domestic and foreign investors in the Indian real estate market.
Badal Yagnik, CEO of Colliers India, stated, “This reflects continued investor confidence in India's economic fundamentals and resilience of the real estate sector.” The data shows that out of the nearly $1.27 billion inflow, domestic investors contributed $762.4 million (60% share) while foreign investors contributed $507.1 million. Interestingly, domestic investments surged by 51% annually in July-September, while inflows from foreign investors declined by 21%.
“Domestic capital contributed 60% 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,” Yagnik added.
The investment momentum is projected to hold steady going forward, despite foreign investors being cautious amid global uncertainties. According to the data, institutional investment in office assets rose by 27% to $779.9 million during July-September, up from $616.3 million in the year-ago period. However, the inflow in the residential segment dipped 17% to $319.7 million in the third quarter of this calendar year, from $384.8 million in the corresponding period of the preceding year.
Institutional flow of funds includes investments from family offices, foreign corporate groups, foreign banks, proprietary trading books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs, and sovereign wealth funds.
Ankur Jalan, CEO of Golden Growth Fund, a real estate-focused Alternative Investment Fund, commented on the investment scenario, “The growth in institutional investment is reflective of the investor confidence on the back of strong demand exhibited across all real estate asset classes.” He further added, “With rationalisation of income tax and GST, and declining interest rates, all of which are expected to enhance consumption and hence India's GDP, investor sentiments and confidence in the real estate sector will remain strong.”
This positive trend in institutional investments is a promising sign for the Indian real estate market, indicating a healthy and resilient sector that continues to attract significant capital despite global economic challenges.
Frequently Asked Questions
What is the percentage increase in institutional investments in Indian real estate in Q3 2023?
Institutional investments in Indian real estate grew by 11% to $1.27 billion in the July-September quarter of 2023, according to Colliers India.
What sectors saw the most significant growth in institutional investments?
Office assets saw the most significant growth, with investments rising by 27% to $779.9 million in Q3 2023, compared to $616.3 million in the same period of the previous year.
How did domestic and foreign investments compare in Q3 2023?
Domestic investors contributed $762.4 million (60% share) of the total $1.27 billion, while foreign investors contributed $507.1 million. Domestic investments grew by 51% annually, while foreign investments fell by 21%.
What factors are driving the growth in institutional investments?
The growth is driven by strong demand across all real estate asset classes, rationalisation of income tax and GST, and declining interest rates, which are expected to enhance consumption and India's GDP.
What is the outlook for institutional investments in the Indian real estate sector?
The investment momentum is expected to hold steady, with continued interest in office and residential segments. Despite global uncertainties, investor confidence remains strong.
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