Institutional investments in India’s real estate declined by 10% to USD 4.7 billion in the first nine months of 2025 from USD 5.2 billion, during the same period last year.
Majority of the top seven cities have witnessed a decline in investment with Mumbai recording the highest growth of 300%, according to Cushman & Wakefield’s India Capital Markets Q3 2025 report.
The sector is however, well on track to close the year with around USD 6–6.5 billion, making 2025 potentially the second-best year on record for institutional investments in commercial real estate.
Domestic institutional participation has grown significantly over the past few years, now accounting for 48% of inflows between January and September - up from a smaller share previously. Foreign investors contributed the remaining 52%.
This structural shift has helped offset volatility in cross-border capital flows and strengthened the market’s stability. Office assets remain the dominant choice for investors, accounting for 35% of YTD inflows, followed by residential (26%), retail (12%), and logistics & industrial (9%).
“India’s real estate investment landscape continues to demonstrate remarkable resilience and depth. Even amid global uncertainty, institutional capital has found stability in India’s strong economic fundamentals, robust domestic demand, and credible governance frameworks. The growing participation of domestic investors, who now contribute the majority share of quarterly inflows, underscores the market’s maturity and confidence in India’s long-term growth story,” said Somy Thomas, executive managing director, Capital Markets.
Foreign capital accounted for two-thirds (67%) of Mumbai’s inflows at USD 797.7 million, led by investors from the United States (USD 500 million) and Japan (USD 297 million) — signalling strong confidence in the city’s fundamentals even as global capital flows remain selective. Domestic investors contributed the remaining USD 398 million, further diversifying the capital base.
Institutional interest in Mumbai extended across asset classes, reflecting the city’s increasingly diversified real estate ecosystem. The residential segment emerged as the primary recipient attracting USD 377.6 million inflows, largely driven by redevelopment projects.
The office sector followed closely with USD 339.71 million, benefiting from continued occupier resilience and renewed leasing activity. The logistics and industrial segment received USD 269.3 million, underscoring the sector’s emergence as an alternative institutional play.
Meanwhile mixed-use commercial projects (including office, hospitality and projects) saw inflows of USD 155 million and data centers attracted USD 54.6 Mn million, highlighting the widening investor appetite beyond traditional asset classes.
Majority of the top seven cities have witnessed a decline in investment with Mumbai recording the highest growth of 300%, according to Cushman & Wakefield’s India Capital Markets Q3 2025 report.
The sector is however, well on track to close the year with around USD 6–6.5 billion, making 2025 potentially the second-best year on record for institutional investments in commercial real estate.
Domestic institutional participation has grown significantly over the past few years, now accounting for 48% of inflows between January and September - up from a smaller share previously. Foreign investors contributed the remaining 52%.
This structural shift has helped offset volatility in cross-border capital flows and strengthened the market’s stability. Office assets remain the dominant choice for investors, accounting for 35% of YTD inflows, followed by residential (26%), retail (12%), and logistics & industrial (9%).
“India’s real estate investment landscape continues to demonstrate remarkable resilience and depth. Even amid global uncertainty, institutional capital has found stability in India’s strong economic fundamentals, robust domestic demand, and credible governance frameworks. The growing participation of domestic investors, who now contribute the majority share of quarterly inflows, underscores the market’s maturity and confidence in India’s long-term growth story,” said Somy Thomas, executive managing director, Capital Markets.
Foreign capital accounted for two-thirds (67%) of Mumbai’s inflows at USD 797.7 million, led by investors from the United States (USD 500 million) and Japan (USD 297 million) — signalling strong confidence in the city’s fundamentals even as global capital flows remain selective. Domestic investors contributed the remaining USD 398 million, further diversifying the capital base.
Institutional interest in Mumbai extended across asset classes, reflecting the city’s increasingly diversified real estate ecosystem. The residential segment emerged as the primary recipient attracting USD 377.6 million inflows, largely driven by redevelopment projects.
The office sector followed closely with USD 339.71 million, benefiting from continued occupier resilience and renewed leasing activity. The logistics and industrial segment received USD 269.3 million, underscoring the sector’s emergence as an alternative institutional play.
Meanwhile mixed-use commercial projects (including office, hospitality and projects) saw inflows of USD 155 million and data centers attracted USD 54.6 Mn million, highlighting the widening investor appetite beyond traditional asset classes.
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