Mumbai: Institutional investment in the Indian real estate sector reached a record high of 8.5 billion US dollars in 2025, marking a 29 percent increase compared to the previous year. This is the highest level recorded so far, according to a report released by Colliers India on Tuesday.
The report highlights that domestic institutional investment more than doubled to 4.8 billion dollars, accounting for 57 percent of the total investment. In contrast, foreign investment fell by 16 percent to 3.7 billion dollars.
It further noted signs of increased foreign investment in the last quarter of 2025, reflecting a gradual restoration of confidence among global investors. The investment in this quarter reached 4.2 billion dollars, the highest ever for any single quarter.
This record investment came at a time when the global economy showed signs of improvement and business conditions were slowly normalising.
Vimal Nadar, National Director and Head of Research at Colliers India, said that alongside this surge, 2025 saw the listing of the fourth real estate investment trust (REIT) focused on office spaces. Additionally, existing REITs made several significant acquisitions, securing better quality tenants, higher occupancy, and strong rental growth.
Nadar predicted that in the coming years, foreign investment would accelerate, strengthening the institutional framework in the sector. He added that approximately 370 million square feet of office space in the country could be brought under REITs in the future.
The office sector attracted the highest investment in 2025, with nearly 4.5 billion dollars invested, constituting 54 percent of the total, nearly double the amount from 2024.
Bengaluru and Mumbai together accounted for about 4 billion dollars of investment in 2025, nearly half of the total real estate investment. Most of this capital was directed towards office buildings in these cities.
Interestingly, five out of seven major Indian cities recorded higher investment in 2025 compared to the previous year, indicating growing strength in the country’s real estate market.
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