The institutional investments in the Indian real estate sector hit a record high of $8.5 billion in 2025, marking a 29 per cent increase over the previous year, according to a report by Colliers India.
Domestic institutional capital more than doubled
The Colliers India report indicated that domestic institutional capital more than doubled to $4.8 billion, accounting for 57 per cent of total inflows, while foreign capital decreased by 16 per cent to $3.7 billion.
Gradual improvement in global investor sentiment
According to the report, cross-border investments began to recover in the last quarter of the year, which was a sign of a gradual improvement in global investor sentiment. Quarterly inflows were the highest ever for a single quarter in Q4 2025 at $4.2 billion, the report noted.
Trade normalcy amid tariff negotiations
The record-high institutional investments in India come when the global economy is doing better, with signs of trade normalcy even amid the ongoing tariff negotiations, it said.
“Alongside this surge, the year also marked the listing of fourth office-focused REIT and notable acquisitions by older REITs, marked by superior tenant quality, higher occupancy levels, and strong rental growth,” said Vimal Nadar, National Director and Head of Research, Colliers India, as reported by IANS.
Nadar anticipated greater institutionalisation and consolidation, accompanied by cross-border capital flows in the coming years, with more than 370 million sq ft of existing office space possibly included in future REITs.
Office sector dominated
The office sector was the main attraction, with $4.5 billion or 54 per cent of the annual investments coming from it, which is nearly double the level of 2024 and is being driven by the increasing involvement of both domestic and foreign investors.
The last three months of the year were responsible for almost 66 per cent of the total capital deployment, and at the same time, there was an impressive demand for Grade A office space in the leading markets of the country.
Bengaluru-Mumbai topped in real estate inflows
The two cities, Bengaluru and Mumbai, together constituted approximately 50 per cent of the total real estate investments in 2025 and lured around $4 billion, with the office segment accounting for nearly 75 per cent of the overall investment in those cities.
Moreover, five out of the seven largest Indian cities registered a rise in capital inflows in 2025 as compared to the previous year.
Frequently-Asked Questions (FAQs):
1) How much institutional investment did Indian real estate attract in 2025?
Institutional investments in the Indian real estate sector touched a record $8.5 billion in 2025, marking a 29 per cent year-on-year increase, according to a report by Colliers India.
2) What was the contribution of domestic and foreign investors?
Domestic institutional investments more than doubled to $4.8 billion, accounting for 57 per cent of total inflows, while foreign capital moderated by 16 per cent to $3.7 billion during the year.
3) Which quarter saw the highest real estate investments?
The fourth quarter of 2025 (Q4) recorded the highest-ever quarterly inflows at $4.2 billion, accounting for nearly two-thirds of the annual capital deployment.
4) Which real estate segment attracted the most investment?
The office sector led investments, attracting $4.5 billion, or 54 per cent of total inflows, nearly double the investment levels seen in 2024.
5) Which cities attracted the highest institutional inflows?
Bengaluru and Mumbai together accounted for about 50 per cent of total investments, attracting nearly $4 billion, with office assets driving close to three-fourths of the activity in these cities.