Capital inflows into India’s real estate sector fell 9 per cent year-on-year (YoY) to $ 4.3 billion in the first nine months of 2025, as investors adopted a cautious approach amid global headwinds, trade frictions, and external volatilities, according to Colliers India.
Despite the decline, investment volumes stayed above the five-year average of $ 4 billion during the January–September period.
Domestic capital rises as foreign inflows shrink
Foreign investments dropped 36 per cent YoY to $2.1 billion in the first nine months of 2025, while domestic institutional capital surged 52 per cent to $ 2.2 billion, underscoring the growing depth of local investors. Colliers noted that domestic institutions are expected to remain a steady capital source, while global investors may stay cautious amid an evolving economic landscape and tighter cross-border capital flows.
Quarterly inflows rise 11 per cent, signalling resilience
Also Read
In Q3 2025, inflows rose 11 per cent YoY to $1.3 billion, reflecting continued confidence in India’s economic fundamentals and real estate resilience.
“Domestic capital contributed 60 per cent of the quarterly inflows, with strong interest in office and residential segments. Notably, office assets accounted for over three-fourths of the domestic investments during the quarter, indicating a continued appetite for both ready and developmental commercial properties. With sustained demand across core asset classes and increasing depth of domestic capital, investment momentum is likely to hold steady, even as global headwinds may keep foreign investors cautious in the near term,” said Badal Yagnik, chief executive officer, Colliers India.
Office and residential segments dominate inflows
Institutional inflows in the office segment reached $1.5 billion in the first nine months of 2025, down 2 per cent YoY, accounting for 35 per cent of total inflows. Residential assets saw $1.1 billion in investments, up 11 per cent YoY, supported by rising interest from both domestic and foreign investors. Mixed-use, retail, and alternative assets together made up nearly one-third of total inflows.
“After a relatively subdued first half, institutional investments in India’s office segment rebounded strongly in Q3 2025, rising 27 per cent YoY to $0.8 billion. Office assets accounted for over 60 per cent of total quarterly inflows, led by notable acquisitions of ready commercial properties, particularly in Chennai and Pune,” said Vimal Nadar, national director and head of research, Colliers India.
Mumbai, Bengaluru lead investment inflows
Mumbai led with $0.8 billion in inflows (19 per cent of total), followed by Bengaluru at $0.5 billion (12 per cent).

)