Whalesbook
Institutional investment in Indian real estate shattered previous records in 2025, reaching an all-time high of $8.47 billion. This represents a significant 29% surge from the $6.56 billion recorded in 2024, according to a Colliers India report.
The influx of capital underscores India's attractiveness as a global investment destination, bolstered by its strong economic growth outlook amidst geopolitical uncertainties. Domestic institutional capital played a dominant role, more than doubling to $4.8 billion and constituting 57% of the total investment volume. This strong participation reflects increasing confidence among local investors, driven by improved asset quality and market transparency.
Key Cities and Asset Classes Drive Inflows
Bengaluru and Mumbai emerged as the primary destinations, collectively drawing nearly half of the total investments, with Bengaluru attracting $2.2 billion and Mumbai $1.8 billion. Office assets were the clear favorite, accounting for 54% of annual inflows ($4.5 billion), nearly doubling from the previous year. Residential properties followed, securing $1.6 billion or 18% of the total.
Foreign Capital and Quarterly Peaks
While foreign capital deployment saw a 16% year-on-year decrease to $3.7 billion, cross-border investments showed recovery signs in the final quarter. This period was particularly strong, with the October-December quarter alone witnessing a record $4.2 billion in investments, indicating a positive shift in global investor sentiment towards India.
Sectoral Performance and Outlook
Mixed-use, retail, and alternative assets also performed well, collectively attracting about $1.5 billion. However, the Industrial & Warehousing sector experienced a sharp decline, with investments plummeting 79%. Colliers forecasts continued strengthening of institutional investments in 2026, prioritizing core income-generating assets like offices, industrial/logistics parks, and residential properties.