- 31% increase in investments with $1.3 billion in the first quarter of 2025
- Revealed in Colliers report
Corporate investments are flowing into the Indian real estate sector. In the first quarter of this year, real estate investments reached $1.3 billion, marking a 31% increase on an annual basis. This growth was primarily driven by domestic investments. Of the total investments this quarter, $0.8 billion, or 60%, came from domestic sources. On an annual basis, domestic investments grew by 75%. Corporate investments have mainly focused on the industrial, warehouse, and office sectors. These details were revealed in the latest report by Colliers.
In the first quarter of 2025, office sector inflows accounted for one-third of the total corporate inflows, with $0.4 billion invested. It is notable that more than half of the total office sector inflows in this quarter were directed to Hyderabad. Additionally, the industrial & warehouse and residential sectors have seen significant transactions. In the first quarter of 2025, these sectors contributed 47% of the total inflows.
“Corporate investors in Indian real estate continue to show confidence. The 31% annual increase in investments in the first quarter of 2025, reaching $1.3 billion, is a testament to this. Both foreign and domestic investors are focusing on office, residential, and industrial & warehouse sectors. These sectors have accounted for 80% of corporate investments in the first quarter of 2025,” the report highlighted.
The momentum is expected to continue throughout the year. Looking at the corporate investments in the residential sector during the first quarter of 2025, they were three times higher than those in the same period of 2024. The residential sector saw inflows of $0.3 billion, which accounted for 23% of total quarterly investments. Interestingly, more than half of the residential sector’s inflows in this quarter were from foreign investors.
“Steady growth in home prices, increasing demand for luxury housing, and ongoing infrastructure development are expected to continue driving corporate investments in residential real estate in the coming quarters,” said Vimal Nadar, Senior Director and Head of Research at Colliers India.
In terms of real estate investments in India during the first quarter of 2025, Mumbai led with a 22% share, attracting $0.3 billion. Bengaluru followed with 20%, and Hyderabad secured 18%.
