Foreign investors are increasingly teaming up with domestic players to tap into India’s real estate market while mitigating risks amid global economic headwinds. According to real estate consultancy Vestian, co-investment inflows surged 6.6 times to USD 726.58 million in the July–September 2025 quarter, even as direct foreign investments fell 68% year-on-year to USD 140.69 million.

The shift underscores a strategic move toward shared risk and local collaboration, reflecting continued confidence in India’s property sector despite global volatility.

Domestic players directly pumped USD 892.22 million during July-September 2025, a more than two-fold jump from USD 414.55 million in the year-ago period.

Overall, Vestian said that the total institutional investments in Indian real estate rose 83 per cent to USD 1,759.49 million during the third quarter of the current calendar year, from USD 960.78 million in the year-ago period.

“Driven largely by the commercial asset class, institutional investments in Indian real estate have surged by 83 per cent year-on-year, reaffirming the sector’s strong resilience amid global headwinds,” Vestian CEO Shrinivas Rao said.

Investments in commercial assets (office, retail, co-working, and hospitality projects) jumped two times to USD 1,397.21 million, from USD 684.47 million.

“While foreign investors adopt a cautious approach, the significant rise in the share of domestic investments and co-investments underscores the growing confidence of domestic investors in India’s growth story,” Rao added.

Amid persistent global economic pressures and policy uncertainties, the share of foreign investment dropped significantly to an annual low of 8 per cent, the Vestian report noted.

On the other hand, the share of domestic investments surged to a significant high of 51 per cent.