Real Estate
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Updated on 14th November 2025, 8:30 AM
Author
Abhay Singh | Whalesbook News Team
Mumbai's real estate market has seen institutional investments surge fourfold to USD 1.19 billion in the first nine months of 2025. Foreign investors, particularly from the US and Japan, accounted for two-thirds of this inflow, funding residential and commercial projects for higher returns. This growth highlights strong fundamentals and infrastructure development, although pan-India investment saw a slight dip.
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Headline: Mumbai Real Estate Attracts Record Institutional Investment
Institutional investments in Mumbai's real estate market have dramatically increased by four times, reaching USD 1.19 billion in the first nine months of 2025, according to Cushman & Wakefield's India Capital Markets Q3 2025 report. This significant jump from USD 295.57 million in the same period last year was largely fueled by foreign capital, which constituted 67% of the total inflow, amounting to USD 797.7 million. Key foreign investors include those from the United States, contributing USD 500 million, and Japan, with USD 297 million. Domestic investors added USD 398 million to this robust inflow.
Impact: This surge indicates strong investor confidence in Mumbai's real estate sector, driven by its resilient fundamentals, ongoing infrastructure projects like the Trans Harbour Link and Coastal Road that enhance connectivity, and the potential for attractive returns on residential and commercial developments. Despite this Mumbai-specific boom, overall institutional investment in Indian real estate saw a 10% decline year-on-year in the January-September 2025 period. Cushman & Wakefield projects total institutional investment in Indian real estate to be between USD 6-6.5 billion for the current calendar year.
Impact Rating: 7/10
Difficult Terms: Institutional Investments: Investments made by large organizations like pension funds, insurance companies, or mutual funds, rather than individual investors. Foreign Capital: Funds originating from outside the country. Domestic Investors: Investors from within the country. Fundamentals: The underlying economic or financial characteristics of an asset or market that determine its value. Infrastructure-led Growth: Economic development that is spurred by investments in public works such as roads, bridges, and public transport. Diversified Asset Base: A range of different types of investments held within a portfolio.