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Institutional investments in Indian real estate have seen a strong start to 2025, with inflows reaching USD 1.3 billion in the first quarter--a 31 per cent year-on-year (YoY) increase, according to a report by real estate and investment firm Colliers.
The report added that the growth was primarily driven by domestic investments, which accounted for 60 per cent of the total inflows during the quarter. With USD 0.8 billion inflows, domestic investments saw a 75 per cent annual rise and were largely focused on industrial and warehousing and office segments, as per the report. Office segment drove one-third of the institutional inflows during the first quarter of 2025, at USD 0.4 billion worth of investments. Hyderabad attracted over half of the total inflows in the office segment in Q1 2025. At the India level, Industrial & warehousing and residential segments too witnessed significant traction, cumulatively accounting for 47 per cent of the total inflows during the first quarter (Q1) of 2025. "This growth highlights the resilience of the Indian real estate and the untapped opportunities it presents. Both foreign and domestic investors remained committed towards core assets, with office, residential and industrial & warehousing segments cumulatively accounting for 80 per cent of the institutional investments in Q1 2025," said Badal Yagnik, Chief Executive Officer, Colliers India. He added that the momentum is expected to persist through 2025, supported by strong economic growth prospects, robust demand across asset classes and optimistic business sentiment. According to the report, during Q1 2025, institutional investments in the residential segment were almost thrice the inflows in the corresponding period of 2024. The segment with USD 0.3 billion inflows accounted for 23 per cent of the total quarterly investments, almost at par with the inflows in the industrial and warehousing segment. Interestingly, foreign investments accounted for over half of the total inflows in the residential segment during the quarter, led by select large deals. In continuation of the growth momentum set in 2024, the Industrial and warehousing segment also saw over USD 0.3 billion of investments in Q1 2025, a notable 73 per cent YoY increase. Investments in alternate assets remained healthy at USD 0.07 billion during the quarter. Amongst alternate assets, data centers particularly witnessed strong traction in Q1 2025, led by capital deployment in a proposed hyperscale data center in Mumbai, the report added. (ANI)
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