Institutional Real Estate Investment in India Drops 33% in Q2: Colliers
Institutional investment in Indian real estate fell by 33% to $1.69 billion in the April-June quarter, as foreign investors became more cautious due to global political and economic uncertainties, according to data from Colliers India.
Real estate consultant Colliers India reported that institutional investments in real estate dropped to $1,691.20 million ($1.69 billion) during April-June 2023, down from $2,533.30 million ($2.53 billion) in the same period last year.
The fund inflow from foreign investors almost halved to $1,048.4 million, from $2,046.80 million during the period under review. Despite this, domestic investors remained bullish and invested $642.8 million during April-June, a 32% increase from $486.5 million in the corresponding period of the previous year.
"Domestic capital has emerged as a key driver in India's real estate investments, with its share in total investments rising steadily from 16% in 2021 to 34% in 2024," said Colliers India CEO Badal Yagnik. In the first half of 2025, domestic investments accounted for 48% of the total inflows, he added. "Their growing dominance has helped cushion the impact of global uncertainties and push total investments to the $3 billion mark in the first half of 2025," Yagnik noted.
According to the data, institutional investment in real estate dropped by 15% in the January-June period to $2,998.10 million, compared to $3,528.50 million in the year-ago period. Foreign institutional investment in real estate fell to $1,570.60 million during the first half of 2025, down from $2,593.80 million in the corresponding period of the preceding year. This decline is attributed to global investors' caution amidst evolving macroeconomic scenarios, credit flow, and inflationary pressures.
However, domestic investors pumped in $1,427.50 million, a 53% increase from $934.7 million in the first six months of 2024. The institutional flow of funds includes investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs, and sovereign wealth funds.
