Surge of Domestic Investments Mitigates Global Caution in Indian Real Estate
Institutional investment in Indian real estate dropped 33% in Q2 2025 due to global uncertainties. Foreign investments halved, but domestic investments rose significantly, cushioning the decline. Domestic investors increased their share to 48% of total inflows, driving total investments to $3 billion in the first half of 2025.
- Country:
- India
Institutional investment in Indian real estate saw a significant decline of 33% to USD 1.69 billion during the April-June 2025 period, as foreign investors exercised caution amidst global political and economic uncertainties, according to data released by Colliers India.
Despite the downturn, domestic investors showcased resilience by contributing USD 642.8 million, marking a 32% increase compared to the same quarter of the previous year. The domestic capital's share in total real estate investments in India rose from 16% in 2021 to an impressive 48% in the first half of 2025, reports Colliers India CEO, Badal Yagnik.
This surge in domestic investments has effectively cushioned the impact of diminishing foreign inflows, propelling total investments to reach the USD 3 billion mark in the initial half of 2025, despite foreign institutional investments falling from USD 2,593.80 million to USD 1,570.60 million due to international market trepidations.
(With inputs from agencies.)
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