Institutional investments in Indian real estate sector surge by 83 pc in July-Sep

New Delhi, Oct 28
The Indian real estate sector recorded institutional investments of $1.76 billion in the third quarter of 2025, the highest quarterly inflow of funds compared to any Q3 in the past four years, a report showed on Tuesday.

While investments reported a marginal dip of 2 per cent over the previous quarter, investments rose by 83 per cent compared to the same period a year earlier, according to the Vestian report.

This underscores heightened investor confidence and resilience of the real estate sector despite global uncertainties.

The commercial sector accounted for the largest share of investments (79 per cent), surpassing its earlier record of 61 per cent in the last quarter and 71 per cent in the same quarter a year ago.

In terms of value, investments soared to nearly $1.4 billion, registering a robust annual growth of 104 per cent.

"Driven largely by the commercial asset class, institutional investments in Indian real estate have surged by 83 per cent year-on-year, reaffirming the sector’s strong resilience amid global headwinds,” said Shrinivas Rao, FRICS, CEO, Vestian.

While foreign investors adopt a cautious approach, the significant rise in the share of domestic investments and co-investments underscores the growing confidence of domestic investors in India’s growth story, he mentioned.

The residential sector attracted investments worth $191.7 million in Q3 2025, accounting for 11 per cent of the total.

The industrial and warehousing sector accounted for a nominal 5 per cent of the total institutional investments. However, investments surged by 168 per cent over the previous quarter to $85.8 million, primarily due to the growing demand for logistics parks.

The share of domestic investments surged to a significant high of 51 per cent, marking a 115 per cent annual and 166 per cent quarterly increase in terms of value.

Foreign investors, while cautious due to global uncertainty, chose to invest in collaboration with local expertise, boosting the share of co-investments to 41 per cent in Q3 2025 from 15 per cent a quarter earlier, said the report.