Real Estate Investments Surge in India in Q1 2025
Institutional investments in India’s real estate sector witnessed a significant 31% year-on-year surge in the first quarter (January–March) of 2025, reaching a total of $1.3 billion, according to a recent report by realty consultancy firm Colliers India.
New Delhi: Institutional investments in India’s real estate sector witnessed a significant 31% year-on-year surge in the first quarter (January–March) of 2025, reaching a total of $1.3 billion, according to a recent report by realty consultancy firm Colliers India. The growth was primarily fueled by increased capital inflow into the residential segment.Busi
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Domestic Investors Lead with 60% Share
The report highlights that domestic investors played a key role, contributing nearly 60% of the total investments. Their contribution grew by 75% year-on-year, amounting to $0.8 billion, signaling growing confidence among Indian investors in the realty space.
Industrial, Warehousing, and Office Segments in Focus
Apart from housing, industrial, warehousing, and office assets remained popular among institutional investors. While the residential sector saw a threefold jump in investments to $302.9 million (compared to $102.6 million in Q1 2024), the office segment experienced a 23% decline, dropping to $434.2 million from $563 million during the same period last year.
Sector-wise Performance Highlights
- Residential Investments: Tripled to $302.9 million from $102.6 million
- Office Investments: Declined by 23% to $434.2 million
- Industrial & Warehousing: Continued to attract strong institutional interest
Outlook for 2025
With domestic participation rising and residential demand rebounding strongly, the Indian real estate sector is poised for sustained growth throughout 2025. Experts believe the market is heading toward a more diversified investment landscape, with newer asset classes likely to gain traction in the coming quarters.
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