Institutional Real Estate Investments in India Surge 11% to $1.27 Billion in Q3: Colliers
Institutional investments in Indian real estate saw a significant uptick, growing by 11% to $1.27 billion in the third quarter of 2023, driven by robust inflows into office assets. Domestic investors led the surge, contributing 60% of the total, highlighting sustained confidence in India's economy and real estate market.
Real EstateInstitutional InvestmentsOffice AssetsDomestic InvestorsForeign InvestorsReal Estate NewsOct 07, 2025
Out of the nearly USD 1.27 billion inflow, domestic investors contributed USD 762.4 million, accounting for 60% of the total, while foreign investors contributed USD 507.1 million. Interestingly, domestic investments surged 51% annually in the third quarter, while foreign investments dropped by 21%.
Badal Yagnik, CEO of Colliers India, noted, “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 projected that the investment momentum will hold steady going forward, despite foreign investors being cautious amid global uncertainties.
Institutional investment in office assets rose 27% to USD 779.9 million during July-September, from USD 616.3 million in the year-ago period. However, the inflow in the residential segment dipped 17% to USD 319.7 million in the third quarter of this calendar year, from USD 384.8 million in the corresponding period of the preceding year.
Institutional flow of funds includes investments from various sources such as 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, “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 added, “With the rationalization 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 trend underscores the growing attractiveness of India's real estate market, particularly in the office and residential segments, and highlights the potential for further growth in the coming quarters. The sustained interest from both domestic and foreign investors bodes well for the overall economic landscape of the country.
Frequently Asked Questions
What is the total amount of institutional investments in Indian real estate in Q3 2023?
The total amount of institutional investments in Indian real estate in Q3 2023 was USD 1.27 billion.
What percentage of the total investment was contributed by domestic investors?
Domestic investors contributed 60% of the total investment, amounting to USD 762.4 million.
How much did institutional investments in office assets grow in Q3 2023?
Institutional investments in office assets grew by 27% to USD 779.9 million in Q3 2023.
What factors are contributing to the sustained investor confidence in India's real estate market?
Factors contributing to sustained investor confidence include the rationalization of income tax and GST, declining interest rates, and strong demand across all real estate asset classes.
How did the investment in the residential segment perform in Q3 2023?
The investment in the residential segment dipped 17% to USD 319.7 million in Q3 2023, compared to USD 384.8 million in the corresponding period of the preceding year.
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