The final quarter of the year emerged as a game changer, with Q4 2025 alone accounting for USD 4.2 billion, the highest-ever quarterly inflow recorded in the Indian real estate sector.

Domestic Capital Takes the Lead

Domestic institutional investors emerged as the primary growth engine in 2025, with investments more than doubling year-on-year to USD 4.8 billion, accounting for 57% of total inflows.

Foreign investments, while moderating by 16% YoY to USD 3.7 billion, showed clear signs of revival in the last quarter, indicating gradual recovery in global investor sentiment amid improving trade conditions and easing geopolitical uncertainty.

“Private equity investments in Indian real estate reached a new high in 2025, supported by record capital deployment in the last quarter of the year. Office assets continued to dominate, followed by residential and industrial & logistics assets,”
— Badal Yagnik, CEO & Managing Director, Colliers India

Office Assets Dominate Institutional Investments

The office segment remained the top investment destination, attracting USD 4.5 billion in 2025—nearly double the inflows seen in 2024. Office assets alone accounted for 54% of total institutional investments during the year.

Key highlights:

• Q4 2025 contributed nearly two-thirds of annual office investments
• Strong Grade A leasing activity supported investor confidence
• Increased participation from both domestic and foreign capital

The residential segment followed with USD 1.6 billion in inflows, marking a 36% YoY growth and an 18% share in total investments. Long-term demand fundamentals, favourable demographics, and joint-venture led expansion into Tier II cities continued to attract capital.

Asset-wise Institutional Investment Trends (USD million)

*Alternate assets include data centres, life sciences, senior housing, student housing, holiday homes, and schools.
Source: Colliers

Q4 2025: A Record-Breaking Quarter

Quarterly inflows peaked in Q4 2025 at USD 4.2 billion, reflecting a 123% YoY jump and a 231% QoQ rise.

Q4 2025 Asset-wise Snapshot (USD million)

REIT Momentum Strengthens Office Investment Case

The year also witnessed:

• Listing of the fourth office-focused REIT
• Portfolio expansion by existing REITs
• Higher occupancy levels and rental growth

“With over 370 million sq ft of office stock having REIT potential, we expect greater institutionalisation and consolidation in the coming years,”
— Vimal Nadar, National Director & Head of Research, Colliers India

Bengaluru and Mumbai Lead Capital Inflows

Bengaluru and Mumbai together accounted for nearly half of total investments in 2025, largely driven by large office transactions.

City-wise Investment Inflows (USD million)

Source: Colliers

Multi-city investments accounted for USD 2.3 billion, with over 40% directed towards residential projects, highlighting growing investor appetite for early-stage housing developments and emerging markets.

Outlook for 2026

Colliers expects institutional investments to remain robust in 2026, supported by:

• Growing domestic capital pools
• Improving global risk appetite
• Strong economic fundamentals

Priority segments:
Offices
Industrial & logistics parks
Residential housing

Also Read: From Crisis to Opportunity: Stressed Real Estate Projects Emerge as India’s Next Investment Frontier

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All three land parcels are being offered for a 99-year lease period, signalling a long-term vision for urban development. The RLDA has opted for an e-tendering single-stage, two-cover bidding system to ensure a transparent process for attracting developers.

Analysis: A Dual Boost for Railways and Real Estate

A Financial Lifeline for Indian Railways For Indian Railways, this land monetisation drive represents a significant step towards unlocking the value of its extensive, yet often underutilised, land assets. The influx of over ₹8,092 crore from just these three parcels will provide a substantial financial boost, creating a crucial revenue stream outside of traditional passenger and freight operations. These funds can be strategically reinvested into modernising railway infrastructure, enhancing safety features, improving passenger amenities, and funding critical new projects, thereby reducing its dependency on government funding.

Impact on Mumbai’s Real Estate Market For Mumbai, a city perpetually constrained by a lack of available land, the release of nearly 20 acres in prime central locations is a major development. The creation of new commercial and residential stock in high-density areas like Bandra, Parel, and Mahalaxmi is expected to invigorate the real estate market. This infusion of supply could help rationalise property prices in these micro-markets and offer new opportunities for both homebuyers and businesses. Furthermore, such large-scale projects often act as catalysts for ancillary development, leading to upgraded local infrastructure and improved connectivity, benefiting the surrounding communities.

Here are the specific details of each tender:

Bandra East: A Commercial Hub in the Making

A sprawling 45,371.00 sq m of railway land in Bandra East, adjoining the Western Express Highway, is up for commercial development. With a reserve price of ₹5,365 crore, this is the most valuable of the three parcels. The site boasts a Floor Space Index (FSI) of 4.0 and a minimum revenue share of 45% for the RLDA.

Key Dates & Information:

• Commencement of e-bid document download: September 9, 2025, at 18:00 hrs.
• Pre-Bid Meeting: September 23, 2025, at 11:30 hrs.
• Last date for receiving queries: October 6, 2025, up to 18:00 hrs.
• Last date for e-bid submission: November 12, 2025, up to 15:00 hrs.
• Opening of e-Bids: November 12, 2025, at 15:30 hrs.
• Bid Security: ₹5.00 Crore.

Parel: Residential Development in a Prime Location

In Parel, the RLDA is offering approximately 23,047.23 sq m of land for residential development at Supari Baug Colony. This project also includes the redevelopment of the existing railway colony on an adjacent 10,000 sq m of land. The reserve price for this parcel is set at ₹1,734 crore, with an estimated redevelopment cost of ₹391.00 crore. The FSI is 4.05, and the minimum revenue share is 30%.

Key Dates & Information:

• Commencement of e-bid document download: September 9, 2025, at 18:00 hrs.
• Pre-Bid Meeting: September 23, 2025, at 16:00 hrs.
• Last date for receiving queries: October 1, 2025, up to 18:00 hrs.
• Last date for e-bid submission: November 3, 2025, up to 15:00 hrs.
• Opening of e-Bids: November 3, 2025, at 15:30 hrs.
• Bid Security: ₹5.00 Crore.

Mahalaxmi: A Blend of Residential and Commercial Potential

The third offering is a 10,801.70 sq m plot in the upscale locality of Mahalaxmi, intended for residential or commercial development. This parcel carries a reserve price of ₹993.30 crore and an FSI of 4.05. The minimum revenue share for the RLDA from this project is pegged at 35%.

Key Dates & Information:

• Commencement of e-bid document download: August 22, 2025, at 18:00 hrs.
• Pre-Bid Meeting: September 9, 2025, at 11:30 hrs.
• Last date for receiving queries: September 12, 2025, up to 16:00 hrs.
• Last date for e-bid submission: October 14, 2025, up to 15:00 hrs.
• Opening of e-Bids: October 14, 2025, at 15:30 hrs.
• Bid Security: ₹5.00 Crore.

Also Read: Railways Floats Tender for 99-Year Lease of Mahalaxmi Railway Land Worth Nearly ₹1,000 Crore

The post Railways to Monetise Nearly 20 Acres of Prime Mumbai Land for Over ₹8,092 Crore appeared first on Square Feat India.

Annual Price Surge of 12%

The report highlights a significant annual growth in housing prices, with an average increase of 12% year-on-year (YoY) across the eight major cities. Delhi NCR recorded the highest YoY growth, with prices surging by 30%, followed closely by Bengaluru.

Quarterly Price Increases: Delhi NCR and Bengaluru Lead

Delhi NCR witnessed the highest quarterly price rise at 16%, driven by substantial price hikes in micro-markets such as Dwarka Expressway and Greater Noida. Bengaluru followed with an 8% increase in average housing prices. Notably, Delhi NCR’s luxury segment saw a considerable boost, with 3-4 BHK configurations experiencing up to a 12% QoQ price increase.

Unsold Inventory Declines Amidst Robust Demand

The report also notes a decrease in unsold inventory across most cities, reflecting robust sales activity. Kolkata experienced the highest sequential decline in unsold inventory at 5%, with Pune, Ahmedabad, and Chennai also seeing reductions. Despite these positive trends, MMR reported a slight increase in unsold units due to a surge in new launches.

Pune and Ahmedabad See Notable Reductions in Unsold Units

Pune stood out with the most significant annual drop in unsold inventory, falling by 13%. Ahmedabad and Chennai also reported a decrease in unsold housing units, with annual reductions ranging from 6% to 8%. This reduction indicates a healthy absorption rate in these markets.

Continued Growth and Market Dynamics

Boman Irani, President of CREDAI National, attributed the steady growth to strong homebuyer sentiment and ongoing positive market conditions. He emphasized that the festive season and government infrastructure initiatives are expected to further impact housing prices and inventory levels positively.

Badal Yagnik, CEO of Colliers India, noted that despite rising prices, demand remains robust, supported by stable interest rates and recent budgetary measures. He anticipates that the upcoming festive season will invigorate the housing market with increased sales and new launches.

Micro-Market Insights: Delhi NCR and Bengaluru

In Delhi NCR, Dwarka Expressway and Greater Noida saw impressive quarterly price increases of 35% and 24%, respectively. Bengaluru’s Inner East and Periphery & Outer East micro-markets reported notable price rises, with Inner East experiencing a 25% increase.

Outlook and Future Projections

Vimal Nadar, Senior Director and Head of Research at Colliers India, highlighted the strong demand in luxury and ultra-luxury segments, particularly for spacious units. The recent changes in long-term capital gains tax are expected to boost investor and homeowner sentiment, further supporting market growth.

As India approaches the festive season, industry stakeholders will closely monitor new launches and housing stock, anticipating continued momentum in the residential real estate sector.

Also Read: CIDCO to Launch Housing Scheme for 902 Flats on Krishna Janmashtami

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In a resolute move aimed at preserving economic stability, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6.5% for the ninth consecutive meeting. This decision, reached by a 4:2 majority, reflects the central bank’s cautious stance in the face of global economic uncertainties. The impact of this policy on the real estate sector is anticipated to be substantial, influencing borrowing costs and shaping investment sentiments as developers and homebuyers adjust to the current interest rate climate. Here’s how real estate experts are reacting to the announcement.

Here’s what real estate industry go to say on the repo rate.

Dr. Niranjan Hiranandani, Chairman, NAREDCO and Hiranandani Group, “The RBI’s decision to maintain the repo rate unchanged acts as a stabilizing force amidst the current volatile global economic environment. With concerns such as potential U.S. recession, the Bangladesh crisis affecting regional capital flows, and broader global uncertainties, stable home loan interest rates provide much-needed predictability. Although a lower repo rate could have boosted affordable housing, which has been impacted by higher interest rates, the current stability is crucial for NRI investors navigating fluctuating foreign exchange rates. This steady environment creates opportunities for both long-term and short-term real estate investments. However, it is essential for stakeholders to remain vigilant and closely monitor inflation trends, fiscal policies, and global economic developments to adapt their strategies effectively.”

Anuj Puri, Chairman – ANAROCK Group, “The RBI’s decision to maintain the repo rate at 6.5% for the ninth consecutive time is a positive development for the housing industry. This consistency in borrowing costs will encourage more aspiring homebuyers, particularly in the affordable segment, and drive demand in the housing market. Coupled with the recent announcement on indexation benefits, which reduces capital gains tax burdens and enhances the appeal of real estate investments, we can expect increased investor confidence and capital flow into the sector. This combination of stable interest rates and favorable taxation is set to boost housing demand, stimulate project construction, create job opportunities, and contribute to broader economic growth. The high housing sales across the top 7 cities in H1 2024 and the significant rise in residential prices further underscore the positive impact of these measures.”

Dharmendra Raichura, Vice President of finance of Ashar Group, said, “The Reserve Bank of India’s (RBI) decision to maintain the repo rate at 6.5% for the ninth consecutive time demonstrates its dedication to achieving the 4% Consumer Price Index (CPI) target. Despite a slight increase in headline inflation to 5.1% in June 2024, the central bank’s commitment to economic stability is evident. With GDP growth projected at 7% in FY25 and inflation at 4.5%, the stable interest rate environment fosters long-term investments in housing. As a real estate developer, we appreciate the significance of a steady repo rate, which influences borrowing costs and impacts the property market. The consistent repo rate provides a favorable environment for sustainable development and growth in the real estate sector.”

Saket Dalmia, President of India Sotheby’s International Realty, “The RBI’s decision to maintain the policy rate aligns with expectations given the current inflation and global economic scenario. While the near-term outlook for global growth appears positive, challenges persist in the medium term due to demographic shifts, climate change, and geopolitical tensions. Despite these factors, domestic economic activity remains resilient. The MPC’s focus on maintaining a disinflationary stance to ensure inflation aligns with targets while supporting growth underscores the importance of stable interest rates. This stability is particularly beneficial for the real estate sector. We support the RBI’s current stance and anticipate that future rate cuts will further bolster the real estate sector and contribute to overall economic stability and growth.”

Vimal Nadar, Senior Director & Head of Research at Colliers India, “Amid swift changes in global economic undercurrents and a moderate global economic outlook, the RBI’s decision to keep benchmark lending rates at 6.5% for the ninth consecutive time reflects a cautious stance. Although inflation remains above the benchmark of 4%, the RBI’s projection of a 7.2% GDP growth rate for FY 2025, supported by strong high-frequency economic indicators, is promising. The stability in interest rates, along with recent moves to rationalize stamp duty charges and provide concessions for women homebuyers, is favorable for the real estate sector, especially the residential segment. The partial withdrawal of revised LTCG tax applicability also provides room for increased housing sales with minimal tax impact, likely boosting investor and homeowner sentiment throughout 2024.”

Shrinivas Rao, FRICS, CEO of Vestian, “The RBI’s decision to keep the repo rate unchanged at 6.5% for the ninth consecutive time reflects a response to persistent inflation, elevated food prices, and global macroeconomic uncertainties. The steady monetary policy over the past year and a half has provided stability in the real estate sector, fostering demand across all asset classes. This positive momentum is expected to continue as the repo rate is likely to remain stable in the near term, despite rising inflation and increasing geopolitical frictions in the Middle East.”

Prashant Sharma, President, NAREDCO Maharashtra, “We welcome the RBI’s decision to keep the policy repo rate unchanged at 6.5%. This move reflects a cautious yet stable approach to monetary policy amidst global economic uncertainties. For the real estate sector, steady interest rates are a positive signal, creating a conducive environment for both homebuyers and investors. Maintaining this stability is crucial for fostering consumer confidence and ensuring sustained sector growth. We hope this decision will stimulate demand in the housing market, especially in the affordable and mid-segment categories, which are vital for the overall development of the industry.”

Pritam Chivukula, Vice President, CREDAI-MCHI and Co-Founder & Director, Tridhaatu Realty, “We welcome the RBI’s decision to keep the policy repo rate unchanged at 6.5%, which reflects a cautious and balanced approach. The real estate sector, particularly in metro cities like Mumbai, has been steadily reviving, and the current rate stability will help sustain this momentum. Homebuyers will continue to benefit from favorable lending rates, encouraging more investments in the housing market. However, we urge the government to consider additional supportive measures to enhance liquidity and provide long-term stability to the sector. Boosting consumer sentiment should be a focus, as it will drive growth in real estate and related industries.”

Rajeev Ranjan, Co-Founder & CEO, The Mentors Real Estate Advisory Pvt Ltd, “The decision by the Monetary Policy Committee to keep the policy repo rate unchanged at 6.5% is a balanced approach that reflects the current economic landscape. Stability in interest rates is crucial for maintaining buyer confidence and ensuring steady demand in the housing segment. While the unchanged repo rate continues to offer a favorable borrowing environment, it also signals the RBI’s intent to closely monitor inflation without disrupting growth. We anticipate that this stance will sustain the momentum in the real estate market, encouraging more homebuyers to take advantage of the existing financial conditions.”

Shraddha Kedia-Agarwal, Director, Transcon Developers, “We commend the RBI’s decision to maintain the policy repo rate at 6.5%. The real estate sector has demonstrated resilience amidst fluctuating economic conditions, and the stability in interest rates is a positive sign for both developers and homebuyers. This decision will help maintain the momentum in the housing market, encouraging potential buyers to invest in their dream homes with confidence. We remain optimistic that steady rates will continue to bolster the real estate sector and support overall economic recovery.”

Rohan Khatau, Director, CCI Projects, “The RBI’s decision to maintain the policy rate is a prudent step, as it helps control inflationary trends. The focus on managing inflation to support growth is commendable and will foster a favorable environment for the real estate sector, enabling growth and stability. We are optimistic that these measures will enhance consumer confidence and encourage homeownership, laying a strong foundation for future progress.”

Samyak Jain, Director, Siddha Group, “We welcome the RBI’s decision to maintain the policy repo rate at 6.5%, which reflects a positive approach toward sustaining economic growth while keeping inflationary pressures in check. The real estate sector has seen steady demand, and this RBI move provides continued stability, allowing homebuyers to benefit from favorable interest rates. We hope this stability will encourage more consumers to invest in real estate, driving further growth in the sector.”

Himanshu Jain, VP – Sales, Marketing, and CRM, Satellite Developers Private Limited (SDPL), “We welcome the RBI’s decision to maintain the key policy rate at 6.5%, which aligns with our economic growth policies. The focus on controlling inflation to stimulate growth will undoubtedly spur housing demand, benefiting both homebuyers and developers. We are optimistic that these policies will further enhance market confidence and drive sustained growth in the real estate industry.”

Also Read: Flex Spaces and Sustainability Drive Commercial Property Trends in APAC and India, Colliers Reports

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Anuj Puri, Chairman – ANAROCK Group

The government’s revised budget announcement allows taxpayers to pick between a 12.5% Long-Term Capital Gains (LTCG) tax rate without indexation and a 20% rate with indexation, for properties purchased before July 23, 2024. This will have a very profound impact on both homeowners and aspiring homebuyers.

Homeowners: This change gives homeowners flexibility in their tax liabilities when they sell their property. For properties held over a long period, where inflation has majorly raised the property’s value, opting for the 20% tax rate with indexation would be beneficial. Indexation adjusts the purchase price for inflation, potentially reducing the taxable gain and overall tax liability. For properties held for shorter periods or in low-inflation periods, the 12.5% rate sans indexation could be more beneficial and result in a lower tax burden.

Homebuyers: This revision can potentially stimulate the residential property market because it provides clarity and implies potential tax burden reduction. Homebuyers’ sentiment will improve as they have flexible options for addressing their future capital gains tax burden. This will result in higher demand, particularly in markets where property values have been seen to rise significantly.

Also, the anticipation of these changes can potentially cause some homeowners to sell properties sooner to benefit from the new tax regime. This will raise the overall supply of housing units available on the market, helping to keep prices in check.

As per ANAROCK Research, H1 2024 saw total sales of nearly 2.51 lakh units across the top 7 cities, 9% more than the same period last year (H1 2023). Given that Q2 2024 saw sales tapering due to the election heat and the increased prices across cities, the new tax imposed by the government in the budget was considered a dealbreaker for many. Now, with the government giving these options to the homebuyers, housing sales momentum will continue unimpeded.

Also Read: More than 50% of Developers Seek Tax Rationalization and Lower Interest Rates from New Government

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