· Q2 2025 saw USD 1.7 billion inflows, 29% rise compared to Q1 2025
· H1 2025 saw USD 3.0 billion investments, a 15% YoY decline
· Domestic investments accounted for 48% of the total inflows in H1 2025
· Residential segment drove 27% of the investments in H1 2025, followed by office at 24% share
· Mumbai & Bengaluru together drove 39% of the investment inflows in H1 2025
Gurgaon, July 03, 2025: After a steady start in the first quarter, institutional investments in the Indian real estate witnessed a notable uptick during Q2 2025, at USD 1.7 billion, a 29% rise on a sequential basis. This mopped-up total investments in H1 2025 to USD 3.0 billion, reinforcing the sector’s resilience amidst ongoing global uncertainties. Although this marked a 15% decline compared to H1 2024, the investment volume remained above the half-yearly average of about USD 2.6 billion since 2021, reflecting sustained investor interest.
While foreign investments saw a 39% YoY decline, domestic capital surged by 53% to USD 1.4 billion, accounting for 48% of the total inflows in H1 2025. The growing share of domestic investments marks an ongoing shift in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across core asset classes.
Trends in Domestic & Foreign investments in Q2 2025 and H1 2025 (in USD million) –
|
City |
Q2 2025 |
Q2 2024 |
Investment share in Q2 2025 (%) |
Q2 2025 vs Q2 2024 |
H1 2025 |
H1 2024 |
Investment share in H1 2025 (%) |
H1 2025 vs H1 2024 (%YoY change) |
|
(% YoY Change) |
||||||||
|
Domestic |
642.8 |
486.5 |
38% |
32% |
1,427.50 |
934.7 |
48% |
53% |
|
Foreign |
1048.4 |
2,046.80 |
62% |
-49% |
1,570.60 |
2,593.80 |
52% |
-39% |
|
Total |
1,691.20 |
2,533.30 |
100% |
-33% |
2,998.10 |
3,528.50 |
100% |
-15% |
Source: Colliers
Note: For transactions involving multiple investors, an equal share of all investors has been assumed in cases where specific details are not publicly available. As a result, the data presented is indicative and may not reflect the exact capital contribution by investor type.
“Domestic capital has emerged as a key driver in India’s real estate investments, with its share in total investments rising steadily from 16% in 2021 to 34% in 2024. In H1 2025, domestic investments accounted for 48% of the total inflows, surging by 53% compared to H1 2024. Their growing dominance has helped cushion the impact of global uncertainties and push total investments to the USD 3.0 billion mark. Over 60% of domestic investments during H1 2025 were directed towards residential and office assets, reflecting sustained confidence in core segments. As domestic capital deepens and diversifies, it is poised to bring greater stability and long-term confidence to India’s maturing real estate ecosystem,” said Badal Yagnik, Chief Executive Officer, Colliers India.
Foreign institutional investments dropped 39% YoY in H1 2025 to USD 1.6 billion, as global investors remained cautious amidst evolving macroeconomic scenario, flow of credit and inflationary pressures. Despite the slowdown, foreign capital still accounted for over half of total inflows, with growing interest in mixed-use and retail assets. Both these segments together comprised about 55% of foreign investments during H1 2025.
Residential & office assets together attract over half of the investments in H1 2025
Residential assets saw USD 0.8 billion of investments, driving 27% of the inflows during H1 2025, followed by office assets, at 24% share. Investments in mixed-use assets too witnessed a significant surge, accounting for more than 20% share in the total inflows during H1 2025, up from 7% share during the corresponding period in 2024. Retail and alternative assets too saw a notable rise in investment inflows, cumulatively accounting for USD 0.5 billion, led by select large deals in H1 2025.
“The USD 1.7 billion of investments recorded in Q2 2025 underscores the resilience of India’s real estate sector, with both core and emerging segments attracting sustained interest. The residential segment continued its strong run, accounting for 31% of quarterly investments, driven by healthy end-user demand, improved affordability, and renewed confidence from institutional investors. The retail sector is also witnessing a steady revival, backed by rising consumption, rapid urbanisation, and evolving consumer lifestyle & spending patterns. With REITs and other institutional players actively scouting for quality retail assets across key markets, investment activity in this segment is expected to gain further traction in the coming quarters,” said Vimal Nadar, National Director & Head of Research, Colliers India.
Trends in institutional investment inflows (USD million) –
|
Asset Class |
Q2 2024 |
Q1 2025 |
Q2 2025 |
Q2 2025 vs Q2 2024 (% YoY Change) |
Q2 2025 vs Q1 2025 (% QoQ change) |
H1 2024 |
H1 2025 |
H1 2025 vs H1 2024 (%YoY change) |
|
Office |
334.4 |
434.2 |
268.6 |
-20% |
-38% |
897.3 |
702.8 |
-22% |
|
Residential |
543.5 |
302.9 |
517.0 |
-5% |
71% |
646.2 |
819.9 |
27% |
|
Alternate assets* |
– |
71.0 |
88.2 |
*NA |
24% |
21.0 |
159.2 |
658% |
|
Industrial & Warehousing |
1,533.1 |
307.7 |
– |
-100% |
-100% |
1,710.8 |
307.7 |
-82% |
|
Mixed use1 |
122.3 |
191.1 |
437.4 |
258% |
129% |
253.2 |
628.5 |
148% |
|
Retail |
– |
– |
380.0 |
*NA |
*NA |
– |
380.0 |
*NA |
|
Total |
2,533.3 |
1,306.9 |
1,691.2 |
-33% |
29% |
3,528.5 |
2,998.1 |
-15% |
Source: Colliers
*Note: Alternate assets include data centers, life sciences, senior housing, holiday homes, student housing, schools etc.
Investment inflows were limited for Retail assets in Q2 2024 and Q1 2025; Investment inflows were limited for Industrial & warehousing segment in Q2 2025; Investment inflows were limited for alternate assets in Q2 2024
1-Includes investments in mixed-use projects as well as deals involving investments across multiple assets in various locations
The institutional flow of funds includes investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs and sovereign wealth funds. The data has been compiled as per available information in the public domain.
Mumbai & Bengaluru together drive 39% of the investment inflows in H1 2025
Mumbai drove 22% of the total investments during H1 2025, led by select deals in office assets. Bengaluru attracted USD 0.5 billion investments during H1 2025, contributing nearly 17% to the total inflows. Office and residential assets together made up 57% of the city’s investment share. Interestingly, select large deal in retail segment in Kolkata, resulted in 13% share in total investments by the city during H1 2025.
City-wise investment inflows in Q2 2025 and H1 2025 (in USD million) –
|
City |
Q2 2025 |
Q2 2024 |
Investment share in Q2 2025 (%) |
Q2 2025 vs Q2 2024 |
H1 2025 |
H1 2024 |
Investment share in H1 2025 (%) |
H1 2025 vs H1 2024 (%YoY change) |
|
(% YoY Change) |
||||||||
|
Bengaluru |
242.3 |
228.8 |
14% |
6% |
498.8 |
432 |
17% |
15% |
|
Chennai |
– |
33 |
0% |
-100% |
48.3 |
154.1 |
1% |
-69% |
|
Delhi NCR |
108.9 |
308.7 |
6% |
-65% |
180.4 |
337.9 |
6% |
-47% |
|
Hyderabad |
21 |
43 |
1% |
-51% |
256.2 |
300.9 |
8% |
-15% |
|
Kolkata |
380 |
– |
23% |
*NA |
380 |
– |
13% |
*NA |
|
Mumbai |
367.2 |
98.4 |
22% |
273% |
656.3 |
129.1 |
22% |
408% |
|
Pune |
17.3 |
4.3 |
1% |
299% |
17.3 |
258.3 |
1% |
-93% |
|
Others/ Multi City |
554.5 |
1,817.10 |
33% |
-69% |
960.8 |
1,916.20 |
32% |
-50% |
|
Total |
1,691.20 |
2,533.30 |
100% |
-33% |
2,998.10 |
3,528.50 |
100% |
-15% |
Source: Colliers
Note: *Investment inflows in Kolkata were limited in Q1 and Q2 2024
Corporate Comm India (CCI Newswire)