Foreign investment in Indian real estate falls 16% to USD 3.65 billion in 2025: Report

Foreign investment in Indian real estate fell 16 per cent to USD 3.65 billion last year, even as overall institutional investments rose 29 per cent to a record USD 8.47 billion, according to data released by Colliers India on Tuesday.

The real estate consultancy said institutional inflows touched an all-time high in 2025, up from USD 6.56 billion in the preceding year, despite a moderation in foreign capital amid global uncertainties.

Domestic investments more than doubled during the year, rising to USD 4.82 billion from USD 2.24 billion in 2024. In contrast, foreign investments declined to USD 3.65 billion from USD 4.32 billion a year earlier.

Colliers said institutional flows include investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs and sovereign wealth funds. The data has been compiled using information available in the public domain.

“During the year, office assets continued to attract the bulk of investments, accounting for 54 per cent of the annual inflows, followed by residential and industrial and warehousing assets,” said Badal Yagnik, Chief Executive Officer and Managing Director, Colliers India.

He added that institutional investments are expected to strengthen further, supported by expanding domestic capital, improving global risk appetite and India’s strong economic fundamentals.

Among asset classes, India’s office market recorded a sharp 94 per cent rise in institutional investments, increasing to USD 4.53 billion last year from USD 2.33 billion in 2024.