Record-Breaking Domestic Investments Drive Indian Real Estate Growth
Institutional investments in Indian real estate soared to a record-breaking $8.47 billion in 2025, representing a 29% increase from the previous year, according to data released by Colliers India. Despite a 16% decline in foreign funding due to global uncertainties, the substantial rise in institutional investments was predominantly fueled by domestic investors.
Domestic investments more than doubled from $2.24 billion in 2024 to $4.82 billion in 2025. This significant surge indicates a growing confidence in the Indian real estate market among local investors. The robust domestic capital base is seen as a key driver of the sector's resilience and growth.
Foreign investments, on the other hand, faced a downturn, reducing from $4.32 billion to $3.65 billion. The decline in foreign funding can be attributed to global economic uncertainties and geopolitical tensions, which have affected investment flows into emerging markets.
Office assets bore the brunt of the investments, making up 54% of the annual inflow. This is followed by residential and industrial assets, which also saw significant investments. The preference for office assets can be attributed to the strong demand from tech companies and the growing importance of co-working spaces.
Experts predict a continuation of this trend into 2026, driven by a robust domestic capital base and favorable economic conditions. The Indian real estate market is expected to remain attractive for both domestic and foreign investors, particularly in sectors such as office, residential, and industrial real estate.
The growth in institutional investments is also expected to boost the overall development of the real estate sector, leading to the creation of new projects, job opportunities, and economic growth. The Indian government's initiatives to improve infrastructure and ease of doing business are further expected to support the sector's growth.
In conclusion, the record-breaking institutional investments in Indian real estate in 2025, driven by a strong domestic capital base, highlight the sector's resilience and potential for continued growth in the coming years. Despite the challenges posed by global uncertainties, the Indian real estate market remains a promising investment destination.
