Institutional Investments in Indian Real Estate Hit Record $8.5 Billion in 2025, Led by Domestic Capital Surge
Institutional investments in Indian real estate reached an all-time high of $8.5 billion in 2025, registering a robust 29 percent year-on-year growth, according to Colliers India. This milestone was driven by an unprecedented surge in the final quarter, which alone accounted for $4.2 billion, the highest capital inflow ever recorded in a single quarter.
The record-breaking performance comes amid improving global economic conditions and growing confidence in India’s long-term growth outlook. Signs of stabilising global trade dynamics and India’s expanding investment landscape have reinforced the country’s position as a preferred destination for global capital, particularly in the real estate sector.
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Domestic institutional investors emerged as the dominant force in 2025, with investments more than doubling year-on-year to $4.8 billion, representing 57 percent of total inflows. This sharp rise reflects increasing confidence among Indian institutions, supported by enhanced market transparency, better asset quality, and stable risk-adjusted returns.
Office assets continued to command the largest share of investments, attracting $4.5 billion, nearly double the levels seen in 2024. Strong Grade A office absorption across major cities underpinned this growth. The residential sector followed with $1.6 billion in investments, marking a 36 percent annual increase, while mixed-use, retail, and alternative assets collectively garnered about $1.5 billion.
From a geographic perspective, Bengaluru and Mumbai together accounted for nearly half of total investments in 2025, driven largely by office assets. The year also witnessed the listing of the fourth office-focused REIT, signalling deeper institutionalisation of the market. With over 370 million sq ft of office stock eligible for future REIT inclusion, institutional investments in Indian real estate are expected to strengthen further in the coming years.
