India’s Real Estate Set for $5–7 Billion Institutional Investment Boom in 2025: Colliers
India’s real estate market is gearing up for a strong investment cycle, with institutional inflows expected to reach $5–7 billion in 2025 and again in 2026, according to the latest outlook from Colliers. The sector showed healthy momentum in 2024, recording $6.5 billion in investments, marking a robust 22% year-on-year growth. This steady capital movement signals growing confidence among both global and domestic investors.
Despite a marginal 9% decline in institutional inflows during the first nine months of 2025, totaling $4.3 billion, Colliers anticipates a strong finish to the year. Transaction closures are likely to accelerate in the final quarter, especially within the office and residential segments, which together are projected to contribute nearly 60% of the year’s total investments. The resilience of occupier demand and a steady supply pipeline continue to support this upward trajectory.
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Experts note that India’s real estate expansion is deeply connected to the country’s broader economic strength. Contributing roughly 18% to national employment, the sector remains one of the country’s most influential growth engines. Structural drivers such as rapid urbanisation, expanding infrastructure, and rising consumption continue to attract sustained capital, reinforcing India’s position as a reliable investment destination.
Colliers highlights that global investors increasingly view India as a standout real estate market within the Asia-Pacific region. The promise of higher returns, scalable opportunities in land and development, and a stable regulatory environment make the country a preferred choice for foreign institutional capital. Growing participation from investors in the US and Asia-Pacific further strengthens India’s international investment appeal.
Additional liquidity from equity markets, including REITs and real-estate-linked IPOs, is opening new channels for cross-border deployment. As institutional-grade supply expands and investor confidence deepens, 2025’s momentum is expected to set the foundation for an even stronger 2026. Colliers anticipates that the coming year will be defined by rising capital flows, broader asset diversification, and a maturing investment ecosystem.
