Real estate institutional investments in Q1 CY25 up 47% at $0.81 bn: Report

Foreign and domestic companies show 'increased commitment to long-term investments'

Institutional investments in Indian real estate in the first quarter of the calendar year 2025 (Q1 CY25) reached $0.81 billion, increasing 47 per cent from the same time in 2024, said a report on Tuesday.

 

Investments were down 63 per cent quarter-on-quarter (Q-o-Q), according to Vestian, a workplace solutions firm.

 

The residential segment got investments worth $506.1 million in Q1 CY25, the most in real estate and up 125 per cent from the same time the year before.

 

Commercial real estate got investments worth $307.2 million in Q1 CY25, up 33 per cent. However, commercial’s share in the total investments declined from 42 per cent in Q1 CY24 to 38 per cent in Q1 2025.

 

The industrial and warehousing segment did not get significant investments in Q1 CY25, but it is expected to do so later on the back of growing e-commerce and a reduction in logistics costs, the report said.

 

Foreign institutions invested $346.9 million in Q1 CY25, up 43 per cent from $11 million in Q1 CY24.

 

Domestic institutions invested $466.4 million, clocking the largest share at 57 per cent. However, their share dropped from 98 per cent in Q1 CY24.

 

“Investor confidence in India’s growth story remains strong, with both foreign and domestic players showing increased commitment to long-term investments. As investment activity continues to build momentum, we can expect a notable increase in future inflows, further reinforcing India's position as a dynamic and attractive investment destination,” said Shrinivas Rao, chief executive officer, Vestian.