Boom in Co-Investment in Indian Real Estate Amid Global Uncertainty

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Foreign investors, amidst global uncertainties, are teaming up with local partners to venture into Indian real estate. According to a Vestian report, this move led to a significant increase in co-investments, which surged 6.6 times to USD 726.58 million during the September quarter.

Despite the global economic headwinds, data from Vestian, a real estate consultant, revealed a decline in direct foreign investments by 68 per cent, amounting to USD 140.69 million in the July-September 2025 period, compared to the previous year. However, the surge in co-investments underscores a strategic approach by foreign investors seeking to mitigate risks.

Domestic investors also showed robust confidence, pumping USD 892.22 million directly into the market, marking over a two-fold increase. Vestian CEO Shrinivas Rao emphasized that the surge in institutional investments, led largely by the commercial asset class, highlights resilience in the Indian real estate sector amid ongoing global pressures.