Foreign investment in Indian real estate fell 16% to $3.65 billion last year: Colliers

According to Colliers India, institutional investments in Indian real estate rose 29 percent last year to a record $8.47 billion, despite a 16 percent decline in foreign fund inflows due to global uncertainties.Real estate consultant Colliers India on Tuesday released the data of institutional investments in Indian real estate, showing that inflows hit a record high of $8.47 billion in 2025, up from $6.56 billion in the previous year.

According to the data, domestic investment more than doubled from $2.24 billion in 2024 to $4.82 billion last year.

However, foreign investment fell by 16 percent from $4.32 billion to $3.65 billion.

The institutional money flow includes investments by family offices, foreign business groups, foreign banks, proprietary books, pension funds, private equity, real estate fund developers, foreign-funded NBFCs, listed REITs and sovereign wealth funds, Colliers said, adding that the data has been compiled based on the information available in the public domain.

“During the year, office buildings continued to attract the largest share of investments, accounting for 54 percent of annual inflows, followed by residential, industrial and warehouse buildings,” said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.

Looking ahead, he said institutional investments are expected to strengthen further, supported by the expansion of domestic capital, improvement in global risk appetite and India’s strong economic fundamentals.

Among various assets, the Indian office market witnessed a 94 percent increase in institutional investments to $4.53 billion last year from $2.33 billion in 2024.