📈 Total institutional investments in Indian real estate stood at USD 3.0 billion in H1 2025, reflecting a 15% YoY decline. However, domestic capital surged by 53% compared to H1 2024, reaching USD 1.4 billion, accounting for 48% of total inflows.
🔼 Q2 2025 Registers a 29% Uptick Over Q1 2025
After a relatively slow Q1, Q2 2025 saw a significant rise in investment flows, touching USD 1.7 billion, up 29% sequentially.
“Domestic capital has emerged as a key driver in India’s real estate investments… Their growing dominance has helped cushion the impact of global uncertainties.”
— Badal Yagnik, CEO, Colliers India
📊 Domestic vs Foreign Investments (USD Million)
| Investor Type | Q2 2025 | Q2 2024 | YoY % | H1 2025 | H1 2024 | YoY % | H1 Share (%) |
|---|---|---|---|---|---|---|---|
| Domestic | 642.8 | 486.5 | +32% | 1,427.5 | 934.7 | +53% | 48% |
| Foreign | 1,048.4 | 2,046.8 | -49% | 1,570.6 | 2,593.8 | -39% | 52% |
| Total | 1,691.2 | 2,533.3 | -33% | 2,998.1 | 3,528.5 | -15% | 100% |
“Despite a drop in foreign capital, total investments remain above the half-yearly average of USD 2.6 billion since 2021.”
— Colliers Report
🏘️ Asset Class-Wise Investment Trends
| Asset Class | Q2 2024 | Q1 2025 | Q2 2025 | YoY % (Q2) | QoQ % (Q2) | H1 2024 | H1 2025 | YoY % (H1) |
|---|---|---|---|---|---|---|---|---|
| Residential | 543.5 | 302.9 | 517.0 | -5% | +71% | 646.2 | 819.9 | +27% |
| Office | 334.4 | 434.2 | 268.6 | -20% | -38% | 897.3 | 702.8 | -22% |
| Mixed-use | 122.3 | 191.1 | 437.4 | +258% | +129% | 253.2 | 628.5 | +148% |
| Retail | – | – | 380.0 | *NA | *NA | – | 380.0 | *NA |
| Alt. assets* | – | 71.0 | 88.2 | *NA | +24% | 21.0 | 159.2 | +658% |
| Industrial & Warehousing | 1,533.1 | 307.7 | – | -100% | -100% | 1,710.8 | 307.7 | -82% |
| Total | 2,533.3 | 1,306.9 | 1,691.2 | -33% | +29% | 3,528.5 | 2,998.1 | -15% |
“The residential segment continued its strong run… The retail sector is also witnessing a steady revival.”
— Vimal Nadar, Head of Research, Colliers India
* Alternate assets include: data centers, life sciences, student housing, schools, senior housing, and holiday homes.
🌆 City-wise Investment Performance
| City | Q2 2025 | Q2 2024 | YoY % | Share Q2 2025 | H1 2025 | H1 2024 | YoY % | Share H1 2025 |
|---|---|---|---|---|---|---|---|---|
| Mumbai | 367.2 | 98.4 | +273% | 22% | 656.3 | 129.1 | +408% | 22% |
| Bengaluru | 242.3 | 228.8 | +6% | 14% | 498.8 | 432 | +15% | 17% |
| Kolkata | 380.0 | – | *NA | 23% | 380.0 | – | *NA | 13% |
| Hyderabad | 21.0 | 43.0 | -51% | 1% | 256.2 | 300.9 | -15% | 8% |
| Delhi NCR | 108.9 | 308.7 | -65% | 6% | 180.4 | 337.9 | -47% | 6% |
| Pune | 17.3 | 4.3 | +299% | 1% | 17.3 | 258.3 | -93% | 1% |
| Chennai | – | 33.0 | -100% | 0% | 48.3 | 154.1 | -69% | 1% |
| Others/ Multi-City | 554.5 | 1,817.1 | -69% | 33% | 960.8 | 1,916.2 | -50% | 32% |
| Total | 1,691.2 | 2,533.3 | -33% | 100% | 2,998.1 | 3,528.5 | -15% | 100% |
“Mumbai and Bengaluru together accounted for 39% of total inflows, led by residential and office deals. Retail emerged strong in Kolkata due to large transactions.”
📌 Key Highlights at a Glance
- USD 3.0 Bn institutional investments in H1 2025 (↓15% YoY)
- Domestic investors: USD 1.4 Bn, ↑53% YoY
- Foreign investors: USD 1.6 Bn, ↓39% YoY
- Top segments: Residential (27%), Office (24%), Mixed-use (21%)
- Top cities: Mumbai (22%), Bengaluru (17%), Kolkata (13%)
Also Read: Indian Real Estate: Riding Higher in 2025
