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Indian real estate attracts USD 1.4 Bn from domestic investors in H1 2025, up 53% YoY
Indian real estate attracts USD 1.4 Bn from domestic investors in H1 2025, up 53% YoY

July 30, 2025

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Q2 2025 saw USD 1.7 billion inflows, 29% rise compared to Q1 2025. Mumbai & Bengaluru together drove 39% of the investment inflows in H1 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 institutional investment inflows (USD million) –

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. 

 

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. 

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Colliers India
Sukanya Dasgupta, Head Marketing and Communications - sukanya.dasgupta@colliers.com

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 28 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.5 billion and $98 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.

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