Institutional investments in Indian real estate grew to US$ 1.7 billion in Q2 2025, marking a 29% rise from the previous quarter. This took total investments in H1 2025 to USD 3.0 billion, a sign of steady investor confidence despite global economic headwinds, as per a research report by Colliers
While this total was 15% lower compared to the same period last year, it remained above the half-yearly average of US$ 2.6 billion recorded since 2021, as per the same report. A major shift was seen in the nature of capital flows, with domestic investments rising sharply while foreign inflows declined, claimed Colliers.
Domestic Investors pumping in money
Indian institutional investors put in US$ 1.4 billion during the first half of 2025—a 53% increase year-on-year—accounting for 48% of total inflows. These funds were largely directed toward residential and office assets, reflecting strong confidence in core segments.
“Domestic capital is becoming a key driver of India’s real estate growth. Its share has steadily increased in recent years, helping support the sector amid global uncertainty,” said Badal Yagnik, CEO of Colliers India.
In contrast, foreign investments dropped 39% to US$ 1.6 billion. However, international capital still made up over half of the total, with increasing interest in mixed-use and retail assets.
Residential real estate attracted the most capital at US$ 0.8 billion, followed by office space. Mixed-use assets saw a significant jump in investment share—from 7% in H1 2024 to over 20% this year. Retail and alternative assets also picked up, thanks to a few large deals.
“Investor interest remains strong, especially in residential and retail segments,” said Vimal Nadar, Head of Research at Colliers India. “As demand, affordability, and consumer spending grow, we expect more capital to flow into quality assets.”
Among cities, Mumbai led with 22% of H1 investments, followed by Bengaluru at 17%, and Kolkata, which saw a boost from a major retail deal.