Institutional Real Estate Investments in India Surge by 11% in Q3: Colliers
Institutional investments in Indian real estate witnessed a 11% increase to USD 1.27 billion in the July-September quarter, driven by robust inflows into office assets, according to real estate consultant Colliers India.
Real EstateInstitutional InvestmentsOffice AssetsDomestic InvestorsForeign InvestorsReal Estate NewsOct 07, 2025
The data showed that institutional investments in real estate increased to $1,269.5 million during July-September, up from $1,148.7 million in the same period last year. This reflects continued investor confidence in India's economic fundamentals and the resilience of the real estate sector, stated Badal Yagnik, CEO of Colliers India.
Out of the nearly $1.27 billion inflow, domestic investors pumped in $762.4 million (60 per cent share) while foreign investors contributed $507.1 million. Interestingly, investments from domestic sources rose 51 per cent annually in July-September, while inflows from foreign investors fell 21 per cent.
Domestic capital contributed 60 per cent 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 noted. He projected the investment momentum to hold steady going forward, despite foreign investors being cautious amid global uncertainties.
Institutional investment in office assets rose 27 per cent to $779.9 million during July-September, from $616.3 million in the year-ago period. However, the inflow in the residential segment dipped 17 per cent to $319.7 million in the third quarter of this calendar year, from $384.8 million in the corresponding period of the preceding year.
Institutional flow of funds includes investments from 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.
Commenting on the investment scenario, Ankur Jalan, CEO of Golden Growth Fund, a real estate-focused Alternative Investment Fund, said, 'The growth in institutional investment is reflective of the investor confidence on the back of strong demand exhibited across all real estate asset classes.' With the rationalisation of income tax and GST, and declining interest rates, all of which are expected to enhance consumption and India's GDP, investor sentiments and confidence in the real estate sector will remain strong, he added.
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 $1.27 billion.
How much did domestic investors contribute to the total investment?
Domestic investors contributed $762.4 million, which is 60 per cent of the total investment.
What was the percentage increase in investments from domestic sources?
Investments from domestic sources rose 51 per cent annually in July-September.
Which segment saw the highest growth in investments?
The office assets segment saw the highest growth, with a 27 per cent increase in investments to $779.9 million.
What factors are boosting investor confidence in the Indian real estate sector?
Factors such as the rationalisation of income tax and GST, declining interest rates, and strong demand across all real estate asset classes are boosting investor confidence in the Indian real estate sector.
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