Also read: Tata Motors Commercial Vehicles shares debut at a 28% premium. Should investors stay on board?
Institutional capital flows maintain strong momentum
At a national level, India witnessed an inflow of $4.7 billion from institutional investors (including private equity and REITs) in the first nine months of 2025. The market is poised to end the year at $6 billion to $6.5 billion, which would make 2025 the second-strongest year on record for institutional investment in commercial real estate.
The investment landscape is also becoming structurally stronger, with domestic institutions accounting for 48% of inflows between January and September – a notable increase compared to previous years. Foreign investors accounted for the remaining 52% and provided a balanced capital base.
Office investments remained the most preferred category among investors, accounting for 35% of this year’s inflows. This was followed by residential (26%), retail (12%) and logistics and industrial (9%), reaffirming the depth and diversity of the Indian real estate market.
“India’s real estate investment landscape continues to demonstrate remarkable resilience and depth,” said Somy Thomas, Executive Managing Director, Capital Markets, Cushman & Wakefield. “The growing participation of domestic investors reflects the maturity of the market and confidence in India’s long-term growth trajectory.”
Mumbai continues to attract global and domestic capital
Mumbai’s resilient investment performance has been supported by a diverse investor base. Foreign capital constituted 67% (USD 797.7 million) of total inflows, largely led by investors from the United States (USD 500 million) and Japan (USD 297 million). Domestic institutions contributed $398 million, further strengthening market stability.
Investment interest is also diversified across asset classes:
Residential led with USD 377.6 million, supported by redevelopment-driven demand.
Office followed with USD 339.71 million, supported by steady leasing activity.
Logistics and industrial assets attracted $269.3 million, underscoring the segment’s growing appeal.
Mixed-use commercial projects received $155 million.
Data centers attracted $54.6 million, reflecting a growing digital infrastructure ecosystem.
Infrastructure: the growth catalyst
Mumbai’s continued investment momentum is closely intertwined with its ongoing urban transformation. Mega projects such as the Mumbai Trans Harbor Link (Atal Setu), the Coastal Road, the growing metro network and the emerging Navi Mumbai International Airport are reshaping connectivity, opening new micro-markets and increasing Mumbai’s competitiveness as a global commercial centre.
“Mumbai’s investment story has come full circle,” said Somy Thomas. “As infrastructure improvements improve access and transform urban mobility, investor confidence in the city’s long-term growth remains robust. We expect momentum to strengthen further in the coming quarters.”
Outlook
With continued capital inflows, diversified investor participation and transformative infrastructure projects underway, Mumbai’s real estate market is entering a new phase of stability and expansion. The city continues to offer attractive opportunities across asset classes, cementing its position as a preferred investment destination in India’s evolving real estate landscape.
#Mumbai #regains #place #Indias #top #real #estate #investment #centre #Cushman #Wakefield #report