New Delhi [India], November 11 : Institutional investments in Mumbai's real estate market crossed USD 1.2 billion in the first nine months of 2025, making this the fourth consecutive year the city has surpassed the billion-dollar mark, according to Cushman & Wakefield's India Capital Markets Q3 2025 report.
This performance signals Mumbai's strong recovery and return to pre-pandemic investment levels, reinforcing its position as India's most attractive gateway market for global and domestic capital.
At the national level, institutional investment inflows (across private equity and REITs) reached USD 4.7 billion year-to-date, underscoring continued investor confidence in India's real estate story. The sector is well on track to close the year with around USD 6-6.5 billion, making 2025 potentially the second-best year on record for institutional investments in commercial real estate.
Domestic institutional participation has grown significantly over the past few years, now accounting for 48 per cent of inflows between January and September - up from a smaller share previously. Foreign investors contributed the remaining 52 per cent. This structural shift has helped offset volatility in cross-border capital flows and strengthened the market's stability. Office assets remain the dominant choice for investors, accounting for 35 per cent of YTD inflows, followed by residential (26 percent), retail (12 per cent), and logistics & industrial (9 per cent).
Somy Thomas, Executive Managing Director, Capital Markets, said, "This resilience reflects strong fundamentals, infrastructure-led growth, and a diversified asset base that continues to attract both foreign and domestic capital. With transformative projects like the Trans Harbour Link and Coastal Road enhancing connectivity, investor confidence in Mumbai's long-term growth remains robust."
Vivek K Chandy, Joint Managing Partner at JSA Advocates & Solicitors said, "Investment in the real estate sector in the south also remains very strong. Bangalore developers have not just moved to the growing and large cities in the south but have started huge developments in Mumbai and the NCR."
"While the equity markets provided huge returns following the pandemic, over the last year the bigger returns have probably been from investments in real estate," Chandy added.
Foreign capital accounted for two-thirds (67 per cent) of Mumbai's inflows at USD 797.7 million, led by investors from the United States (USD 500 million) and Japan (USD 297 million) signalling strong confidence in the city's fundamentals even as global capital flows remain selective. Domestic investors contributed the remaining USD 398 million, further diversifying the capital base.
Institutional interest in Mumbai extended across asset classes, reflecting the city's increasingly diversified real estate ecosystem. The residential segment emerged as the primary recipient, attracting USD 377.6 million inflows, largely driven by redevelopment projects.
The office sector followed closely with USD 339.71 million, benefiting from continued occupier resilience and renewed leasing activity. The logistics and industrial segment received USD 269.3 million, underscoring the sector's emergence as an alternative institutional play.
Meanwhile, mixed-use commercial projects (including office, hospitality and projects) saw inflows of USD 155 million and data centers attracted USD 54.6 million, highlighting the widening investor appetite beyond traditional asset classes.
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