Institutional Real Estate Investments in India Soar Despite Drop in Foreign Funds
Institutional investments in Indian real estate rose 29% to a record $8.47 billion last year, despite a 16% drop in foreign fund inflow due to global uncertainties, according to Colliers India.
Real estate consultant Colliers India released data on institutional investments in Indian real estate, showing that the inflow reached an all-time high of $8.47 billion in 2025, up from $6.56 billion in the preceding year.
Domestic investments more than doubled to $4.82 billion last year from $2.24 billion in 2024. However, foreign investments dipped 16% to $3.65 billion from $4.32 billion.
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, Colliers said, adding that the data has been compiled from available information in the public domain.
During the year, office assets continued to attract the bulk of the investments, accounting for 54% of the annual inflows, followed by residential and industrial & warehousing assets, said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.
Looking ahead, Yagnik said institutional investments are expected to strengthen further, supported by expanding domestic capital, improving global risk appetite, and India's strong economic fundamentals.
Among different assets, India's office market witnessed a 94% increase in institutional investments to $4.53 billion last year from $2.33 billion in 2024.
