Institutional investments in Indian real estate touched an all-time high of USD 8.5 billion in 2025, registering a 29% year-on-year growth, according to Colliers India. The record inflows were driven by a sharp surge in year-end investments, improving global macroeconomic stability, and sustained confidence in India’s growth story.
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)
| Asset Class | 2024 | 2025 | YoY Change |
|---|---|---|---|
| Office | 2,338.9 | 4,534.6 | +94% |
| Residential | 1,149.1 | 1,566.9 | +36% |
| Industrial & Warehousing | 2,541.6 | 734.2 | -71% |
| Mixed Use | 390.0 | 819.3 | +110% |
| Retail | 104.4 | 380.0 | +264% |
| Alternate Assets* | 39.5 | 272.5 | +590% |
| Hospitality | – | 167.3 | NA |
| Total | 6,563.5 | 8,474.8 | +29% |
*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)
| Asset Class | Q4 2025 | YoY Change |
|---|---|---|
| Office | 3,051.8 | +270% |
| Residential | 427.3 | +262% |
| Alternate Assets | 128.0 | +592% |
| Industrial & Warehousing | 409.5 | -44% |
| Mixed Use | 111.5 | +32% |
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)
| City | 2024 | 2025 | YoY Change |
|---|---|---|---|
| Bengaluru | 590.4 | 2,228.2 | +277% |
| Mumbai | 1,581.4 | 1,809.5 | +14% |
| Pune | 369.0 | 465.1 | +26% |
| Hyderabad | 300.9 | 433.1 | +44% |
| Kolkata | 75.3 | 380.0 | +404% |
| Chennai | 547.5 | 503.5 | -8% |
| Delhi NCR | 520.8 | 319.8 | -39% |
| Others / Multi-city | 2,578.2 | 2,335.6 | -9% |
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
