New Delhi: Despite a 15% year-on-year decrease, India's real estate sector garnered $3 billion in institutional investments in H1 2025, according to a recent report by Colliers.
According to the report, inflows in the second quarter reached a strong USD 1.7 billion, an increase of almost 30% over Q1, demonstrating robustness in the face of global economic headwinds.
Notably, local investors made a significant contribution, investing USD 1.4 billion, a 53% increase over H1 2024, and accounting for 48% of total inflows.
This represents a significant increase from only 16% in 2021, indicating an ongoing shift in the capital investment environment, with Indian institutional investors playing a more important part in boosting real estate activity across key asset classes.
As domestic capital deepens and diversifies, it is expected to provide more stability and long-term faith in India's developing real estate market, according to Badal Yagnik, Chief Executive Officer of Colliers India.
Despite a 39% year-on-year decrease to USD 1.6 billion, foreign investments accounted for 52% of the total. Mixed-use and retail properties made up 55% of these foreign investments, reflecting a change in investor sentiment in light of macroeconomic concerns.
Residential real estate topped investments with USD 0.8 billion, or 27% of total H1 2025 investments, followed by office assets with 24%. Mixed-use properties experienced considerable growth, climbing from 7% in H1 2024 to more than 20% in H1 2025.
Mumbai and Bengaluru led geographically, accounting for 22% and 17% of H1 investments, respectively. Mumbai's performance was fueled by office transactions, while Bengaluru saw a healthy investment mix of office and residential sectors. A significant retail deal in Kolkata boosted the city's H1 inflows by 13%.
The retail industry is also experiencing a consistent comeback, fueled by increased consumption, accelerated urbanization, and changing consumer lifestyles and spending habits. With REITs and other institutional participants actively searching for excellent retail properties in key locations, investment activity in this sector is projected to gain pace in the coming quarters, according to Vimal Nadar, National Director and Head of Research at Colliers India.