Indian realty drives $1.4 billion domestic investment in first half

After a steady start in the first quarter, institutional investments in Indian real estate witnessed a notable uptick during the second quarter at $1.7 billion, a 29 per cent rise on a sequential basis.

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This mopped-up total investments in the first half of 2025 to $3.0 billion, reinforces the sector's resilience amidst ongoing global uncertainties.

Although this marked a 15 per cent decline compared to H1 2024, the investment volume remained above the half-yearly average of about $2.6 billion since 2021, reflecting sustained investor interest, according to Colliers survey.

While foreign investments saw a 39 per cent YoY decline, domestic capital surged by 53 per cent to $1.4 billion, accounting for 48 per cent of the total inflows in first half. The growing share of domestic investments marks an ongoing shift in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across core asset classes.

"Domestic capital has emerged as a key driver in India’s real estate investments, with its share in total investments rising steadily from 16 per cent in 2021 to 34 per cent in 2024.