Institutional investment in Indian real estate picked up strongly in Q1 (Jan-Mar) 2025 at $0.81 billion, a 47% year-on-year growth, according to a report by real estate advisory firm Vestian. This reflects increasing confidence among investors, it states.
The largest component was the housing market, at 62% of all investments, up from 41% in Q1 2024. Residential property investment by value grew 125% year on year to $506.1 million in Q1 2025.
At the same time, the market for commercial property attracted $307.2 million, representing 38% of total investments. While its share declined by 1 percentage point from 42% in Q1 2024, commercial asset investment grew at a 33% year-over-year rate.
Surprisingly, there were no significant investments in the warehousing and industrial sector during Q1 2025. Experts, however, predict investment in these sectors in the near future, given the fast-growing e-commerce sector and falling logistics costs.
Local investors were hopeful of Indian growth despite the contribution of foreign investors, which increased tremendously. Foreign investment percentage increased from 2% in Q1 2024 to 43% in Q1 2025 due to robust economic growth of India and a boost in infrastructure development. Foreign investments, valued, increased by a whopping 3,054% to $346.9 million in Q1 2025 from $11 million in Q1 2024.
Local investors, albeit still maintaining control of majority 57%, gave up percentage to 98% in Q1 2024. Domestic investment also dropped by 14% to $466.4 million.
There will be more institutional investment in India's real estate sector, thanks to India's economic stability and infrastructure growth, the report says. Confidence in India's growth story over the long term remains high, and indigenous and international players continue to invest more, Vestian's Shrinivas Rao says. With investment activity on the upswing, flows in the future will also go up, and India will become an investment destination.
Read also| Gold Prices Hit ₹1 Lakh per 10 Grams as Market Volatility Surges
Read also| Gold Futures Soar Past ₹96,000 Mark with ₹1,493 Surge in Stellar Rally
