New Delhi [India], July 3 : Despite a 15 per cent year-on-year decline, India's real estate sector attracted USD 3 billion in institutional investments in H1 2025, noted a recent report by Colliers.
The report further mentions that the second quarter alone saw a robust USD 1.7 billion in inflows, up nearly 30 per cent from Q1, demonstrating resilience amid global economic headwinds.
Notably, domestic investors played a crucial role, contributing USD 1.4 billion, a 53 per cent rise from H1 2024 and accounting for 48 per cent of the total inflows. This marks a sharp increase from just 16 per cent in 2021, reflecting an ongoing shift in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across core asset classes.
"As domestic capital deepens and diversifies, it is poised to bring greater stability and long-term confidence to India's maturing real estate ecosystem," said Badal Yagnik, Chief Executive Officer, Colliers India.
While foreign investments fell 39 per cent YoY to USD 1.6 billion, they still made up 52 per cent of the total. Mixed-use and retail assets accounted for 55 per cent of these foreign inflows, indicating a shift in investor preference amid macroeconomic uncertainties.
Among asset classes, residential real estate led with USD 0.8 billion, or 27 per cent of total investments in H1 2025, followed by office assets at 24 per cent. Mixed-use assets saw significant growth, jumping from 7 per cent in H1 2024 to over 20 per cent in H1 2025.
Geographically, Mumbai and Bengaluru dominated, contributing 22 per cent and 17 per cent of H1 investments, respectively. Mumbai's performance was driven by office deals, while Bengaluru saw balanced investment across the office and residential sectors. A large retail transaction in Kolkata propelled the city to a 13 per cent share of H1 inflows.
"The retail sector is also witnessing a steady revival, backed by rising consumption, rapid urbanisation, and evolving consumer lifestyle & spending patterns. With REITs and other institutional players actively scouting for quality retail assets across key markets, investment activity in this segment is expected to gain further traction in the coming quarters," said Vimal Nadar, National Director & Head of Research, Colliers India.
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