Indian real estate attracted institutional investments of $1.80 billion in Q2 2025, marking a 122% surge over the previous quarter despite a 42% year-on-year decline. Global investors from the USA, Japan, and Hong Kong contributed $1.06 billion, accounting for 89% of foreign inflows2.
Foreign investment share dipped to 66% from 71% last year, with a notable shift toward co-investments—rising to 15% from 8%—as investors sought to mitigate risks amid geopolitical and economic uncertainty. Commercial assets dominated, drawing 69% of foreign capital, while residential assets received just 11%2.
Domestic investments stood at $336 million, down 47% annually and 28% quarter-on-quarter, reflecting cautious sentiment among Indian players. Vestian CEO Shrinivas Rao noted the rebound was driven by commercial real estate momentum and expects continued growth, supported by strong macro fundamentals and a recent repo rate cut.
