Could Domestic Investors Really Infuse $1.4 Billion in Indian Real Estate in Jan-June, Up 53%?
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Synopsis
Discover how domestic investors have significantly boosted their presence in India's real estate sector, infusing $1.4 billion in just the first half of 2025. This remarkable 53% increase highlights a shift towards local capital, reshaping the investment landscape amidst global uncertainties. Delve into the details of this financial surge and its implications for the future of real estate in India.
Key Takeaways
- Domestic investments reached $1.4 billion in H1 2025.
- Investments increased by 53% compared to previous periods.
- Over 60% of investments focused on residential and office sectors.
- Mixed-use properties saw a significant uptick in investments.
- REITs are driving interest in quality retail assets.
New Delhi, July 3 (NationPress) Domestic investment in the Indian real estate sector surged by 53% to $1.4 billion during the first half of 2025, representing 48% of total inflows, according to a report released on Thursday.
After a stable beginning in Q1, institutional investments in Indian real estate experienced a significant increase in Q2 2025, reaching $1.7 billion, marking a 29% rise compared to the previous quarter, as noted by a report from Colliers.
This brought total investments for H1 2025 to $3.0 billion, underscoring the sector's resilience in the face of ongoing global uncertainties.
The investment volume has consistently stayed above the half-yearly average of about $2.6 billion since 2021, demonstrating continued investor enthusiasm.
The report highlights that the increasing proportion of domestic investments signifies a shift in the capital investment landscape, with Indian institutional investors taking a more active role in stimulating real estate activity across core asset categories.
"Domestic capital has become a pivotal force in India’s real estate investments, with its percentage of total investments steadily climbing from 16% in 2021 to 34% in 2024,” stated Badal Yagnik, Chief Executive Officer of Colliers India.
More than 60% of domestic investments in H1 2025 were allocated to residential and office assets, showcasing ongoing confidence in these core segments.
“As domestic capital continues to deepen and diversify, it is set to bring added stability and long-term confidence to India’s evolving real estate ecosystem,” Yagnik added.
Residential assets attracted $0.8 billion in investments, contributing 27% to total inflows during H1 2025, with office assets following closely at 24%.
Investments in mixed-use properties also saw a substantial increase, comprising over 20% of total inflows in H1 2025, up from 7% during the same period in 2024, the report indicated.
Retail and alternative assets experienced a significant uptick in investment, collectively accounting for $0.5 billion, driven by several large transactions in H1 2025.
“With REITs and other institutional players actively seeking quality retail assets in key markets, investment activity in this sector is expected to gain further momentum in the upcoming quarters,” said Vimal Nadar, National Director and Head of Research at Colliers India.
Point of View
I observe that the surge in domestic investment in India's real estate reflects growing confidence among local investors. This trend not only stabilizes the market but also signifies a shift in investment patterns, underscoring the importance of domestic capital in navigating global uncertainties. Such developments are vital for fostering a robust real estate ecosystem in the country.
NationPress
03/07/2025
Frequently Asked Questions
What caused the surge in domestic investments in Indian real estate?
The surge can be attributed to increased confidence among domestic investors, as well as a shift towards core asset classes, particularly residential and office properties.
How significant is the $1.4 billion investment?
This investment represents a 53% increase compared to previous periods, indicating a strong recovery and interest in the real estate sector amidst global uncertainties.
What sectors are attracting the most investment?
Over 60% of the investments were directed towards residential and office assets, with mixed-use properties also seeing significant growth.
What does this trend mean for the future of real estate in India?
This trend suggests greater stability and confidence in the Indian real estate market, with domestic capital likely to play a crucial role in its development.
How do REITs factor into this investment growth?
REITs and other institutional players are increasingly seeking quality retail assets, which is expected to boost investment activity in this segment.
