Institutional Real Estate Investment in India Drops 33% in Q2: Colliers
Institutional investment in Indian real estate declined by 33% to $1.69 billion in the second quarter of 2023, according to data from Colliers India. Foreign investors showed caution due to global uncertainties, while domestic investors increased their investments.
Real EstateInstitutional InvestmentForeign InvestorsDomestic InvestorsColliers IndiaReal Estate NewsJul 03, 2025
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.
Frequently Asked Questions
What was the percentage decline in institutional real estate investment in India during April-June 2023?
Institutional real estate investment in India declined by 33% during the April-June 2023 quarter.
How much did foreign investors invest in Indian real estate in April-June 2023?
Foreign investors invested $1,048.4 million in Indian real estate during April-June 2023.
What was the increase in domestic investment in Indian real estate during April-June 2023?
Domestic investment in Indian real estate increased by 32% to $642.8 million during April-June 2023.
What percentage of total investments did domestic capital account for in the first half of 2025?
Domestic capital accounted for 48% of total investments in the first half of 2025.
What are the sources of institutional investments in Indian real estate?
The sources of institutional investments in Indian real estate include 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.
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