Institutional investments in Indian real estate touched USD 1.76 billion in Q3 2025 — the highest quarterly inflow for any third quarter in the past four years, according to a report by Vestian. Despite a marginal 2% dip quarter-on-quarter, inflows were up 83% year-on-year, underscoring the sector’s resilience and growing investor confidence amid global economic headwinds.

The commercial segment dominated with 79% of total investments, amounting to nearly USD 1.4 billion, a robust 104% annual growth. The residential sector drew USD 191.7 million (11% share), down 49% sequentially, while industrial and warehousing accounted for 5% of total inflows, rising 168% quarter-on-quarter to USD 85.8 million.

The industrial and warehousing sector accounted for a nominal 5% of the total institutional investments. However, investments surged by 168% over the previous quarter to USD 85.8 Mn, primarily due to the growing demand for logistics parks.

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

Amid persistent global economic pressures and policy uncertainties, the share of foreign investments dropped significantly to a yearly low of 8%. On the other hand, the share of domestic investments surged to a significant high of 51%, marking a 115% annual and 166% quarterly increase in terms of value. Foreign investors, while cautious due to global uncertainty,chose to invest in collaboration with local expertise, boosting the share of co-investments to 41% in Q3 2025 from 15% a quarter earlier.