Institutional investments in Indian real estate reached Rs. 11,090.30 crore (US$ 1.3 billion) in January to March 2025, marking a 31% YoY growth, according to Colliers. Domestic investors contributed Rs. 6,824.80 crore (US$ 800 billion), representing 60% of total inflows, with a 75% YoY rise. The office segment attracted Rs. 4,222 crore (US$ 495 million), with Hyderabad securing more than half. Residential investments surged 195% YoY to Rs. 2,431 crore (US$ 285 million), nearly matching the industrial & warehousing sector, which saw a 73% YoY rise to Rs. 2,448 crore (US$ 287 million). Investments in alternative assets, such as data centres and life sciences, soared 238% YoY to Rs. 614 crore (US$ 72 million). At the same time, the retail sector saw minimal inflows.
A strong manufacturing Purchasing Managers' Index (PMI) of 58.1 (March 2025), an increasing Index of Industrial Production (IIP), and expected monetary policy easing contributed to this growth. The demand for luxury housing and global investor and domestic developer partnerships further drove investments. Mumbai led with Rs. 3,199 crore (US$ 375 million), followed by Bengaluru. The market outlook remains positive, supported by strong economic fundamentals and favourable policies, ensuring sustained investor confidence.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.