Institutional Investors Pour $80 Billion into India's Real Estate Sector Since 2010
India's property market has attracted nearly $80 billion in institutional investments over the past 15 years, with foreign capital dominating 57% of the inflows. The sector is projected to be valued between $5 and 10 trillion by 2047.
Real EstateInstitutional InvestmentsForeign CapitalReitsPolicy ReformsReal EstateSep 13, 2025
Institutional funds have flowed in from a wide spectrum of sources, including family offices, pension funds, sovereign wealth funds, private equity firms, foreign corporates, NBFCs, listed REITs, and developer-backed real estate funds. A series of policy reforms has helped build this momentum. The introduction of RERA, the roll-out of GST, and the launch of REITs have improved transparency, efficiency, and institutional confidence in the sector, the report said.
By 2047, when India marks 100 years of Independence, the sector could be valued between $5 and 10 trillion, up from the current market size of around $0.3 trillion, Colliers and CREDAI projected. The transformation of the industry has been marked. From being mostly fragmented and unorganised in the 1990s, real estate has become a more structured and accountable contributor to economic growth. Its share in GDP has gone up from under 5% before 2010 to about 6–8% in recent years, while in 2025 alone it added nearly $0.3 trillion to the economy.
REITs are emerging as another important trend, offering Indian investors yields of 6–7%, higher than global averages. By definition, REITs are firms that own and manage real estate assets to generate income, making them a growing option for investment.
Frequently Asked Questions
What is the total amount of institutional investment in India's real estate sector since 2010?
India's real estate sector has attracted nearly $80 billion in institutional investments since 2010.
What percentage of the total inflows has been contributed by foreign investors?
Foreign investors have contributed 57% of the total inflows since 2010.
What are some of the key sources of institutional funds in India's real estate sector?
Key sources of institutional funds include family offices, pension funds, sovereign wealth funds, private equity firms, foreign corporates, NBFCs, listed REITs, and developer-backed real estate funds.
What policy reforms have improved transparency and efficiency in the real estate sector?
The introduction of RERA, the roll-out of GST, and the launch of REITs have improved transparency and efficiency in the real estate sector.
What is the projected value of India's real estate sector by 2047?
By 2047, the sector is projected to be valued between $5 and 10 trillion.
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