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The Indian real estate industry had a breakout year in 2025, attracting a record $8.5 billion in institutional investments. Strong inflows from domestic funds helped shield the sector from global economic uncertainty.
According to a report published on January 6 by Colliers India, institutional funds registered 29% year-over-year growth in 2025, marking the best performance ever for the sector. This was registered despite the tough global conditions, which were seen as negatively influencing foreign investment.
Office funds and bonds are the largest attractors of investment, having raised $4.5 billion, accounting for 54% of total assets. The sector has almost doubled its investments from 2024, as demand for Grade A office space and leasing of capability centers and large companies has remained steady.
Residential property also firmed, with investment up 36% to $1.6 billion, or 18% of the total. Retail, mixed-use, and alternative sectors, such as data centres, also attracted $1.5 billion, as investors seek more diversified property exposures.
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Together, Bengaluru and Mumbai accounted for nearly $4 billion in investment activity in office properties. Major deals witnessed include Brookfield India Real Estate Trust’s acquisition of the Ecoworld campus in Bengaluru for $1.5 billion and the listing of India’s fourth office REIT.
Looking ahead, Badal Yagnik, CEO of Colliers India, said investment activity is likely to continue strongly. This is on the back of economic growth and the global economic recovery. Vimal Nadar stated that there are 370 million sq ft of office space that are REIT-ready. The rise supports India as one of the most stable real estate destinations for investment in the world.
