Indian real estate attracted $3 billion in institutional investments in the first half of 2025, down 15% year-over-year (YoY) but above the historical half-yearly average of $2.6 billion since 2021, signaling resilience amid global economic headwinds, according to a Colliers report. The second quarter alone recorded $1.7–billion in inflows, a 29% sequential increase from Q1 2025, driven by robust domestic capital and sustained interest in core and emerging asset classes.Domestic investors led the charge, contributing $1.4 billion in H1 2025, a 53% YoY surge, and accounting for 48% of total inflows—up from 34% in 2024 and just 16% in 2021.
“Domestic capital has become a cornerstone of India’s real estate market, cushioning global uncertainties and driving stability,” said Badal Yagnik, CEO of Colliers India. Over 60% of domestic investments targeted residential and office assets, reflecting confidence in these segments’ long-term potential.Foreign investments, however, fell 39% YoY to $1.6 billion, as global investors navigated macroeconomic challenges, tighter credit, and inflationary pressures. Despite the decline, foreign capital still comprised 52% of H1 2025 inflows, with 55% directed toward mixed-use and retail assets, signaling growing appetite for diversified portfolios.
The residential sector led with $0.8 billion in investments, capturing 27% of H1 2025 inflows, fueled by strong end-user demand and improved affordability. Office assets followed with a 24% share, while mixed-use projects surged to over 20% of inflows, up from 7% in H1 2024. Retail and alternative assets also gained traction, contributing $0.5 billion, driven by large deals. “The $1.7 billion in Q2 underscores the sector’s strength, with residential and retail benefiting from rising consumption and urbanization,” said Vimal Nadar, National Director & Head of Research at Colliers India.Mumbai and Bengaluru together accounted for 39% of total inflows, reinforcing their status as investment hubs.
The retail sector, in particular, is poised for growth, with REITs and institutional players eyeing high-quality assets in key markets.Despite the YoY decline, India’s real estate market remains a bright spot, bolstered by domestic capital’s growing dominance and diversified investor interest. As consumption and urbanization accelerate, Colliers expects investment activity, particularly in retail and mixed-use segments, to gain further momentum in the coming quarters, solidifying India’s position as a maturing real estate ecosystem.
