New Delhi, Oct 7 (NationPress) Driven by domestic investment, institutional funding in the Indian real estate market reached $4.3 billion during the initial nine months of 2025, as indicated by a report released on Tuesday.

The investment levels for the nine-month period exceeded the average inflow of $4 billion recorded in the same timeframe over the past five years, according to a report by Colliers India.

This trend highlights the persistent investor confidence in the core aspects of the Indian economy and the real estate sector.

It also illustrates a cautious approach from investors given the ongoing global challenges, trade tensions, and external uncertainties.

"Institutional investments in Indian real estate reached $1.3 billion in Q3 2025, marking an 11 percent increase year-on-year (YoY). This demonstrates sustained investor faith in India's economic fundamentals and the robustness of the real estate sector," stated Badal Yagnik, Chief Executive Officer of Colliers India.

Domestic institutional investments surged by 52 percent YoY to $2.2 billion, indicating an increasing involvement of institutional investors in the Indian real estate market.

Domestic investments accounted for 60 percent of the quarterly inflows, with significant interest noted in the office and residential sectors. Specifically, office properties comprised over three-fourths of the domestic investments during the quarter, reflecting an ongoing demand for both completed and developing commercial properties.

"With persistent demand across primary asset categories and a growing depth of domestic capital, the investment trend is expected to remain stable, even as global challenges may keep foreign investors cautious in the short term,” Yagnik added.

Looking ahead, while domestic institutions are likely to continue being a reliable source of capital, global investors are expected to adopt a cautious approach in the near future, influenced by the evolving global economic landscape and stricter regulations on cross-border capital deployment, the report highlighted.

Institutional investments in the office segment reached $1.5 billion in the first nine months of 2025, nearly matching the levels observed during the same period in 2024, constituting 35 percent of the total inflows this year.

“After a relatively quiet first half, institutional investments in India’s office sector saw a strong recovery in Q3 2025, increasing by 27 percent YoY to $0.8 billion. Office properties accounted for over 60 percent of the total quarterly inflows, driven by significant acquisitions of completed commercial properties, particularly in Chennai and Pune," explained Vimal Nadar, National Director and Head of Research at Colliers India.

With inflows of $0.8 billion, Mumbai contributed 19 percent of the total investments in 2025, led by transactions in office and residential properties, followed closely by Bengaluru.