New Delhi – Institutional investments in India’s real estate sector rose sharply to $0.81 billion in the first quarter of 2025 (January–March), marking a 47 per cent year-on-year increase, according to a report by real estate consultancy firm Vestian. The surge signals renewed investor confidence in the sector.
The residential segment led the investment inflow, commanding a 62 per cent share—up from 41 per cent in Q1 2024. In value terms, residential investments jumped 125 per cent year-on-year, reaching $506.1 million.
Meanwhile, commercial real estate attracted $307.2 million, accounting for 38 per cent of total institutional investments during the quarter. Although its share dropped slightly from 42 per cent in Q1 2024, the commercial segment still saw a 33 per cent increase in investment value.
Notably, the industrial and warehousing sector recorded no major investments during the quarter. However, the report highlights that this segment is expected to gain traction in the near future, driven by the growth of e-commerce and a decline in logistics costs.
Foreign investor participation saw a dramatic rise, with their share increasing from just 2 per cent in Q1 2024 to 43 per cent in Q1 2025. In value terms, foreign investments soared by 3,054 per cent—from $11 million to $346.9 million—on the back of India’s strong economic growth and rapid infrastructure development.
Domestic investors, while still holding the majority at 57 per cent, saw their share fall from 98 per cent a year earlier. Investments from domestic sources stood at $466.4 million, registering a 14 per cent decline year-on-year.
Vestian CEO Shrinivas Rao noted, “Investor confidence in India’s growth story remains strong, with both foreign and domestic players showing increased commitment to long-term investments. This is evident in the growing share of foreign investors, alongside the active participation of domestic investors.”
The report concludes that institutional investments are likely to continue on an upward trajectory, supported by a stable economy and ongoing infrastructure expansion. (Source: IANS)
