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Institutional investments in Indian real estate jump 68% to record $3.73 bn in Q4 2025: Report
Commercial assets continued to attract the largest share of investments during the Oct-Dec quarter, driven by strong demand from global capability centres
Institutional investments in Indian real estate surged 68% year-on-year to a record $3.73 billion during the October–December quarter of 2025. Commercial assets continued to attract the largest share of investments during the quarter, driven by strong demand from global capability centres (GCCs). The segment accounted for 63% of total inflows, valued at $2.3 billion, according to Vestian.
Foreign investments increased over ten-fold to $1.5 billion in Q4 2025 compared to the preceding quarter, with over 20% of quarterly investments directed towards sustainability-focused assets. However, as foreign investors remained cautious amid global uncertainties, co-investments rose sharply by 90% quarter-on-quarter to $1.38 billion during the quarter, the consultant said.
Meanwhile, domestic investors continued to show confidence, with cumulative inflows in 2025 rising 18% year-on-year to nearly $2.4 billion, it noted.
The US-based real estate consultant said in a statement that India’s real estate sector attracted the highest-ever institutional investments of $8.1 bn in 2025, anchored by an all-time high quarterly investment of $3.73 bn in Q4 2025. Institutional investments in 2025 increased by 88% over 2023 and 19% compared to 2024, while the quarterly investments soared by 112% in Q4 2025 compared to the preceding quarter, it said.
It added that 13% of total quarterly investments were allocated towards sustainable project development, signalling a decisive push by investors to embed sustainability into real estate development.
Commercial assets accounted for 63% of overall institutional investments in 2025, up sharply from 35% a year earlier. In value terms, investments in the segment rose 113% year-on-year to nearly $5.1 billion, it said.
While the share of residential investments remained largely stable in the last quarter of 2025 compared to the previous quarter, investment value jumped 129% to $438.4 million, it said.
Investments in the industrial and warehousing sector surged more than seven-fold quarter-on-quarter to $615 million, driven by strong demand for logistics parks amid peak domestic consumption across India. The sector’s share of total investments rose to 17% in Q4 2025, from 5% in the previous quarter, the report said.
Also Read: Foreign investment in Indian real estate dips 16% to $3.65 billion in 2025: Colliers
Shrinivas Rao, FRICS, CEO, Vestian said, “The record $8.1 billion in institutional investments recorded in 2025 reinforces sustained investor confidence in India’s long-term economic fundamentals. As capital increasingly aligns with sustainability-led development, sustained GCC-driven occupier demand, and rising domestic participation, Indian real estate continues to evolve into a resilient, diversified, and future ready investment market.”
