Cross-border investments showed signs of recovery in the last quarter, indicating a gradual improvement in global investor sentiment, the report said. Quarterly inflows peaked at $4.2 billion in the fourth quarter of 2025, the highest ever in a single quarter, the report said.The unprecedented levels of institutional investment in India come at a time when the global economy is holding up better, with signs of normal trade even in the wake of ongoing tariff negotiations, it added.
“In addition to this strong increase, the year also marked the listing of the fourth largest office-focused REITs and notable acquisitions by older REITs, characterized by superior tenant quality, higher occupancy rates and strong rental growth,” said Vimal Nadar, national director and head of research, Colliers India.
Nadar predicted a greater degree of industrialization and consolidation, supported by cross-border capital flows over the coming years, with more than 370 million square meters of existing offices potentially being absorbed into future REITs.
The office sector dominated, attracting $4.5 billion or 54 percent of annual investments, nearly double the 2024 level, supported by rising participation from both domestic and foreign investors. The last quarter alone accounted for almost two-thirds of annual capital deployment and coincided with strong absorption of quality space in the country’s key office markets.
Bengaluru and Mumbai together accounted for about half of real estate inflows in 2025, attracting about $4 billion, with office properties accounting for almost three-quarters of activity in those cities.
Interestingly, five of the seven major Indian cities saw a year-on-year increase in capital inflows by 2025.
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