Investments in India’s Real Estate Sector Surge by 47% in Q1: Report

New Delhi, April 22 (NationPress) Institutional investments in India's real estate sector during the first quarter (January-March) of this year reached an impressive $0.81 billion, indicating a 47% year-on-year increase and reflecting a renewed sense of confidence among investors, as reported by the real estate consultancy firm Vestian.

With investments nearing the billion-dollar mark in Q1 2025, the residential sector has taken the lead, commanding 62% of the total share—up from 41% during the same period last year.

In terms of value, investments experienced an annual surge of 125%, reaching $506.1 million in Q1 2025, according to the report.

Investments in commercial assets totaled $307.2 million in Q1 2025, constituting 38% of the total investments for the quarter.

Although the share dropped from 42% in Q1 2024 to 38% in Q1 2025, the value of investments increased by 33% during the same timeframe.

Interestingly, the industrial and warehousing sector did not see any significant investments in Q1 2025.

Nonetheless, it is expected to attract investments in the future due to the rapidly expanding e-commerce sector and decreasing logistics costs, the report suggests.

While domestic investors continue to express confidence in India’s growth story, the involvement of foreign investors has notably increased during Q1 2025.

The share of foreign investors jumped from 2% in Q1 2024 to 43% in Q1 2025, driven by India’s robust economic growth in comparison to other major economies and accelerated infrastructure development.

In value terms, foreign investments skyrocketed by 3,054% annually, reaching $346.9 million in Q1 2025, up from $11 million a year prior, as stated in the report.

Conversely, domestic investors held a dominant share of 57% in Q1 2025, although this was a decline from 98% the previous year.

In terms of value, domestic investments amounted to $466.4 million, reflecting a 14% annual decrease.

With significant deals reinforcing confidence in the real estate sector, institutional investments are projected to continue their upward trend, bolstered by rapid infrastructure growth and economic stability, the report noted.

Shrinivas Rao of Vestian stated, “Investor confidence in India's growth story remains strong, with both foreign and domestic players showing increased commitment to long-term investments. This is evident in the growing share of foreign investors, alongside the active participation of domestic investors.

"As investment activity continues to build momentum, we can anticipate a significant increase in future inflows, further solidifying India's status as a dynamic and appealing investment destination.”