Institutional investment in real estate dips 33% in Apr-Jun: Colliers

Real estate consultant Colliers India data showed that institutional investments in real estate fell to $ 1,691.20 million during April-June this year from $ 2,533.30 million in the year-ago period

Institutional investment in Indian real estate fell 33 per cent to $ 1.69 billion in April-June as foreign investors were cautious in view of global political and economic uncertainties, according to Colliers India.

Real estate consultant Colliers India data showed that institutional investments in real estate fell to $ 1,691.20 million ($ 1.69 billion) during April-June this year from $ 2,533.30 million ($ 2.53 billion) in the year-ago period.

 

The fund inflow from foreign investors almost halved to $ 1048.4 million, from $ 2,046.80 million during the period under review.

Domestic investors remained bullish and pumped in $ 642.8 million during April-June, an increase of 32 per cent from $ 486.5 million in the corresponding period of the preceding year.     

"Domestic capital has emerged as a key driver in India's real estate investments, with its share in total investments rising steadily from 16 per cent in 2021 to 34 per cent in 2024," Colliers India CEO Badal Yagnik said.

In H1 2025, domestic investments accounted for 48 per cent of the total inflows, he added.  "Their growing dominance has helped cushion the impact of global uncertainties and push total investments to the $ 3 billion mark in the first half of 2025," Yagnik said.

As per the data, institutional investment in real estate dropped 15 per cent in January-June period to $ 2,998.10 million, from $ 3,528.50 million in the year-ago period.     

Foreign Institutional investment in real estate fell to $ 1,570.60 million during the first half of 2025, from $ 2,593.80 million in the corresponding period of the preceding year, as global investors remained cautious amidst evolving macroeconomic scenarios, flow of credit and inflationary pressures.

However, domestic investors pumped $ 1,427.50 million, a rise of 53 per cent, from $ 934.7 million in the first six months of 2024 calendar year.

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.