India’s real estate hits record US$ 10.4 billion institutional investment in 2025
- IBEF
- December 23, 2025
According to a report, India’s real estate sector recorded an unprecedented Rs. 94,120 crore (US$ 10.4 billion) in institutional investments in 2025, marking the highest annual inflow into the sector to date. The sharp rise in investments reflects growing confidence among both domestic and global investors, supported by favourable macroeconomic conditions, improved transparency, and sustained demand across key real estate segments. Office assets continued to attract a significant share of institutional capital, driven by steady leasing activity and strong tenant occupancy levels. Similarly, the residential segment witnessed heightened investor interest amid consistent housing demand, reinforcing the sector’s attractiveness for long-term institutional participation across commercial and residential asset classes.
The report further highlighted that institutional investors remained focused on industrial and warehousing assets, supported by the continued expansion of e-commerce, manufacturing, and logistics activities. Increased participation by foreign investors, along with the growing role of domestic institutions, contributed to the record inflows witnessed during the year. The sector also benefited from a series of regulatory reforms, improved project execution, and enhanced governance standards, which together strengthened investor confidence and increased market transparency. With stable demand across commercial, residential, and industrial real estate segments, the Indian real estate market continues to be viewed as a strong long-term investment destination. Overall, record institutional investments underline the sector’s resilience and its ability to support infrastructure development, employment generation, and broader economic growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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