Institutional investments in Indian Real Estate hit USD 1.76 billion in Q3 CY2025; Highest in four years: Report

New Delhi [India], October 28 (ANI): The Indian real estate sector recorded institutional investments of USD 1.76 billion in the third quarter (Q3) of calendar year 2025, the highest quarterly inflow of funds compared to any Q3 in the past four years, according to a report by Vestian.
While investments saw a marginal dip of two per cent from the previous quarter, they rose sharply by 83 per cent over the same period a year earlier.
The report pointed out that the commercial segment continued to lead, accounting for 79 per cent of total institutional inflows. This was higher than its share of 61 per cent in the previous quarter and 71 per cent in Q3 2024. In value terms, commercial investments reached nearly USD 1.4 billion, showing a strong annual growth of 104 per cent.
The residential sector attracted investments worth USD 191.7 million, contributing 11 per cent to the total inflow. However, this reflected a 49 per cent drop compared to the last quarter, though it was still six per cent higher than the same time last year. The industrial and warehousing sector accounted for a modest five per cent of total investments, but registered a significant 168 per cent quarterly increase to reach USD 85.8 million, driven largely by rising demand for logistics and storage spaces.
Shrinivas Rao, FRICS, CEO of Vestian, said, "Driven largely by the commercial asset class, institutional investments in Indian real estate have surged by 83 per cent year-on-year, reaffirming the sector's strong resilience amid global headwinds. While foreign investors adopt a cautious approach, the significant rise in the share of domestic investments and co-investments underscores the growing confidence of domestic investors in India's growth story."
Vestian's report also showed a shift in the investment mix. Foreign investment in Indian real estate fell to an annual low of 8 per cent in Q3 2025, as overseas investors remained cautious amid uncertain global conditions. In contrast, domestic investors took a leading role, accounting for 51 per cent of total inflows. This represented an annual growth of 115 per cent and a quarterly growth of 166 per cent in value terms.
Co-investments, where foreign and local players invest together, also gained momentum, rising to 41 per cent this quarter from 15 per cent in Q2 2025.
In terms of geography, multi-city investments accounted for 39 per cent, followed by Mumbai (18 per cent) and Chennai (16 per cent), as per the report. (ANI)