Indian Real Estate Sees 122% Spike in Institutional Investments, Despite Annual Decline
In Q2 2025, India's real estate sector attracted $1.80 billion in institutional investments, marking a 122% rise from the previous quarter. However, a 42% annual decline was noted. Foreign investments form 66% of the total, with a significant shift towards co-investments amid global uncertainties.
- Country:
- India
India's real estate sector attracted institutional investments worth $1.80 billion in the second quarter of 2025, a significant 122% increase from the previous quarter, according to Vestian. However, despite this quarterly surge, a 42% annual decline was reported compared to the highest-ever quarterly investments recorded.
The report highlights that nearly 89% of foreign investments originated from the U.S., Japan, and Hong Kong, primarily into commercial properties. Residential sectors saw just 11% of investments, with diversified properties receiving the remaining funds. The proportion of investments from these nations remained stable year-over-year.
While foreign investments continued to dominate with a 66% share, down from 71% in Q2 2024, their overall value fell 46% to $1.19 billion. Meanwhile, co-investments nearly doubled to represent 15% of the total, hinting at a more cautious investor sentiment amidst geopolitical and economic challenges.
(With inputs from agencies.)
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