In 2025, institutional investments in the Indian real estate sector hit a record $8.5 billion, marking a 29% year-on-year increase, as per a report by Colliers India. Domestic institutional capital surged to $4.8 billion, accounting for 57% of total inflows, while foreign capital decreased to $3.7 billion. The final quarter of 2025 saw a peak in quarterly inflows at $4.2 billion, the highest ever for a single quarter, signaling a recovery in cross-border investments.
The report also highlighted that the global economy’s stability and improving trade conditions contributed to this surge in institutional investments in India. The year witnessed the listing of the fourth office-focused REIT and significant acquisitions by older REITs, characterized by high tenant quality, occupancy levels, and rental growth. Vimal Nadar, National Director and Head of Research at Colliers India, predicted a rise in institutionalization and consolidation supported by cross-border capital flows in the coming years, potentially including over 370 million sq ft of existing office space in future REITs.
The office sector emerged as the dominant recipient of investments, attracting $4.5 billion or 54% of the total annual investments, nearly double the figures from 2024. Bengaluru and Mumbai collectively drew about $4 billion of real estate inflows in 2025, with office assets driving a significant portion of activity in these cities. Notably, five out of seven major Indian cities experienced a year-on-year increase in capital inflows during the same period.
