India's real estate may get institutional investments of ₹5-7 bn in 2025

Institutional investments in Indian real estate totalled $4.3 billion in the first nine months of 2025, a 9% Y-o-Y decline

India’s real estate sector is projected to attract institutional investments of $5–7 billion each in 2025 and 2026, according to a report by real estate consultancy firm Colliers.

 

In 2024, investments stood at $6.5 billion, a 22 per cent year-on-year (Y-o-Y) increase.

 

“Investments in India’s real estate sector have demonstrated remarkable resilience, underscoring the depth of the market and growing investor confidence. We foresee annual investments to the tune of $5-7 billion each in 2025 and 2026, driven by a balanced interplay of foreign and domestic investors,” said Badal Yagnik, chief executive officer (CEO) and managing director (MD).

   

Institutional investments in Indian real estate totalled $4.3 billion in the first nine months of 2025, a 9 per cent Y-o-Y decline. The last quarter of the year is expected to see increased transaction closures, particularly in the office and residential segments. Together, these segments are likely to account for nearly 60 per cent of the year’s total investments. It would be supported by sustained occupier activity and a healthy supply pipeline, according to Colliers.

 

The report added that these investments highlight the market’s depth and stability, even amid global trade frictions.

 

“Indian real estate continues to benefit from structural demand levers such as robust domestic economic growth, rising urbanisation, infrastructure augmentation, and rising consumption levels. As investors increasingly align with India’s long-term growth story, both domestic and offshore capital are expected to gain further momentum in the coming quarters. Overall investment sentiment remains optimistic, with expanding foreign investor participation, particularly from the US and Asia-Pacific. This reflects India’s continued appeal as a high-potential, resilient real estate market,” Yagnik added.

 

Colliers also highlighted that global investors continue to view India as one of the most promising real estate destinations in the Asia-Pacific (APAC) region. It is owing to the prospects of higher returns and scalable capital deployment, particularly in land and development assets.

 

Favourable demographics, a stable policy environment, and a positive economic outlook are keeping investor sentiment strong.

 

Equity markets are adding liquidity and creating additional avenues through real estate investment trusts (Reits) and initial public offerings (IPOs), further driving cross-border participation.

 

Overall, investors are actively evaluating and deploying capital across core and emerging asset classes — a trend expected to strengthen as institutional-grade supply expands, Colliers added. 

Vimal Nadar, national director and head of research, Colliers India, said the momentum seen in 2025 sets the stage for a stronger 2026, supported by robust demand across core assets and a growing pipeline of institutional-quality supply.