Indian Real Estate Reaches New Heights in Institutional Investments

Institutional investments in Indian real estate hit a record $8.47 billion in 2025, fueled by a surge in domestic investments, despite a decline in foreign funds. Office assets accounted for the majority of the inflows. The trend is expected to continue due to robust economic fundamentals.

Institutional investments in the Indian real estate sector soared to an unprecedented $8.47 billion last year, marking a 29% increase from the previous year, according to data released by Colliers India on Tuesday. This robust growth occurred despite a 16% decrease in foreign investment inflow, attributed to global economic uncertainties.

Colliers India's report highlights the remarkable rise in domestic investments, which more than doubled to $4.82 billion in 2025 from $2.24 billion in 2024. Conversely, foreign investments experienced a downturn, falling to $3.65 billion from $4.32 billion. The data encompasses contributions from family offices, foreign corporate entities, banks, proprietary books, private equities, and sovereign wealth funds.

Badal Yagnik, CEO and Managing Director of Colliers India, noted that office assets remained the most attractive investment category, capturing 54% of the annual inflows. The office market alone saw a 94% surge in investments. He projected that institutional investments would continue to strengthen, driven by expanding domestic capital and a growing global risk appetite.

(With inputs from agencies.)