Institutional investments in Indian real estate have seen a strong start to 2025, with inflows reaching $1.3 billion in the first quarter—a 31 per cent year-on-year (YoY) increase. This growth was primarily driven by domestic investments, which accounted for 60 per cent of the total inflows during the quarter. With $0.8 billion inflows, domestic investments saw a 75 per cent annual rise and were largely focused on industrial & warehousing and office segments.

Office segment drove one-third of the institutional inflows during the first quarter of 2025, at $0.4 billion worth of investments. Hyderabad attracted over half of the total inflows in the office segment in Q1 2025. At the India level, Industrial & warehousing and residential segments too witnessed significant traction, cumulatively accounting for 47 per cent of the total inflows during Q1 2025.

"Institutional investors in Indian real estate continue to exhibit confidence, as investments rose by 31 per cent Y-o-Y to $1.3 billion in Q1 2025. This growth highlights the resilience of the Indian real estate and the untapped opportunities it presents. Both foreign and domestic investors remained committed towards core assets, with office, residential and industrial & warehousing segments cumulatively accounting for 80 per cent of the institutional investments in Q1 2025. The momentum is expected to persist through 2025, supported by strong economic growth prospects, robust demand across asset classes and optimistic business sentiment. Anticipated easing of monetary policy in the near future and proactive government policies are likely to ensure capital deployment in both core and alternative real estate assets throughout the year,” said Badal Yagnik, Chief Executive Officer, Colliers India.