India’s real estate sector attracted the highest-ever institutional investments of USD 8.1 Bn in 2025, anchored by an all-time high quarterly investment of USD 3.73 Bn in Q4 2025. Institutional investments in 2025 increased by 88% over 2023 and 19% compared to 2024, while the quarterly investments soared by 112% in Q4 2025 compared to the preceding quarter. Interestingly, 13% of the total quarterly investments were allocated towards sustainable project development, signalling investors’ decisive push to embed sustainability into real estate development.

Source: Vestian Research

Commercial assets accounted for 63% of the overall investments in 2025, rising from 35% a year earlier. In terms of value, it rose by 113% to nearly USD 5.1 Bn. Additionally, commercial assets continued to attract the largest share of investments in Q4 2025, owing to robust demand from GCCs. It accounted for 61% of total inflows, valued at USD 2.3 Bn.

Even though the share of investments in the residential sector remained relatively stable in the last quarter of 2025 compared to the previous quarter, investments increased by 129% to USD 438.4 Mn in terms of value.

Investments in the industrial and warehousing sector surged more than sevenfold Q-o-Q to USD 615 Mn, driven by strong demand for logistics parks amid peak domestic consumption across India. The sector’s share in total investments also rose to 17% in Q4 2025 from 5% in the previous quarter.

Note: Commercial assets include office, retail, co-working, and hospitality projects.
          Diversified assets include commercial, residential, and/or industrial & warehousing.

Source: Vestian Research

Foreign investments increased by more than 10 times to USD 1.5 Bn in Q4 2025 compared to the previous quarter, where over 20% of the quarterly investments were dedicated towards sustainability.  As foreign investors remained cautious amid global uncertainties, co-investments surged sharply by 90% Q-o-Q to USD 1.38 Bn in Q4 2025. Concurrently, domestic investors continued to demonstrate confidence in the market, with cumulative inflows in 2025 increasing 18% Y-o-Y to nearly USD 2.4 Bn.

Note: Co-investment refers to joint funding by foreign and domestic investors.

Source: Vestian Research

According to Shrinivas Rao, CEO, Vestian, the record USD 8.1 billion in institutional investments recorded in 2025 reinforces sustained investor confidence in India’s long-term economic fundamentals. As capital increasingly aligns with sustainability-led development, sustained GCC-driven occupier demand, and rising domestic participation, Indian real estate continues to evolve into a resilient, diversified, and future ready investment market.