Institutional Investment in Indian Real Estate Surges 31% to $1.3 Billion in Q1 2025: Colliers

According to Colliers India, investments made by institutions in Indian real estate grew 31% year-on-year to $1.3 billion at the end of the first quarter of 2025. The growth was largely attributed to a surge in domestic investments, constituting 60% of total inflows.

The domestic institutional investments grew by an impressive 75% to $0.8 billion, predominantly in the industrial, warehousing and office segments. Fund inflows in the residential sector also surged 三fold to $302.9 million from $102.6 million a year earlier in the same quarter.

But, in the office segment, this was down 23%, with investments dropping from $563 million to $434.2 million. Industrial and warehousing asset investments grew by 73% to $307.7 million. Mixed-use projects also experienced significant growth with an increase of 46%, totaling $191.1 million.

On the other hand, Colliers India CEO Badal Yagnik noted that institutional investors were still interested in the Indian real estate market, which offered resilience and undiscovered opportunities. “Investors, both foreign and domestic, are focused on core assets; Q1 2025 institutional investment of office, residential, and industrial & warehousing accounts for 80% of the investment,” he said.

Binitha Dalal, founder & managing partner of Alternate Investment Fund (AIF) Mt K Kapital, said given the increasing amount of institutional investments in the Indian real estate market, structured investment vehicles like AIFs that provide a professional management approach, diversification of risk, and regulated investment environment are favourably gaining acceptance over conventional direct investments in real estate.

Golden Growth Fund (GGF) CEO, Ankur Jalan noted that the sustaining of institutional capital into Indian real estate shows strong investor confidence despite global uncertainties. With inflation easing and possible interest cuts ahead, Jalan says, the market is still very attractive for domestic and global investors.

Institution investors in this include family offices, foreign corporate groups, banks, pension funds, private equity firms, REITs and sovereign wealth funds, Colliers India explained. The report is based on public data and reflects the increasing positive sentiment around India’s real estate market.