Market observers said that this uptick, defying global macroeconomic uncertainties, is largely propelled by a newfound confidence from domestic investors, which registered a significant surge annually.
India’s real estate sector is witnessing a resurgence, with capital inflows surging by 29 percent quarter-on-quarter (QoQ) in Q2 2025, according to data from Colliers, a global real estate consultancy firm.
Market observers said that this significant uptick, defying global macroeconomic uncertainties, is largely propelled by a newfound confidence from domestic investors, which registered a significant surge annually.
According to Colliers’ H1 2025 report, institutional investments in Indian real estate reached $3.0 billion in H1 2025. Notably, domestic investments surged significantly by 53 percent year-on-year to $1.4 billion, now accounting for a significant 48 percent of total inflows.
Market observers said that it highlights the increasing prominence of Indian institutional investors in driving real estate activity. As per data by global real estate consultancy firm, Savills’ Q2 2025 data specifically on private equity (PE) investment inflows shows that the commercial office segment led with a 31 per cent share of total inflows in Q2 2025.
Retail and residential segments followed with 23.4 percent and 22.8 percent shares, respectively. Investors also diversified their portfolios, with hospitality and student housing garnering 15 per cent and 1 per cent share respectively, reflecting evolving investment strategies.
A significant trend noted by Savills is the high share of land transactions in overall PE investments at 40 percent during H1 2025, indicating a renewed perspective towards developing new assets.
Commenting on the buoyancy of the commercial segment, Pankaj Jain, Founder & CMD of SPJ Group, said that the impressive capital inflows into commercial real estate, especially retail, are a clear testament to the positive economic sentiments prevailing in India.
“Consumers are back in physical spaces, and businesses are expanding, leading to increased demand for well-located, modern retail spaces. This trend reflects a strong belief in India’s consumption story and the long-term growth trajectory of our economy,” he said.
Savills’ data showed that the housing sector, which is a perennial bellwether for the economy, is also attracting significant attention.
Ishaan Singh, Director at AIPL, highlighted burgeoning investment trend in key growth corridors such as Dwarka Expressway, which has become a magnet for housing investments. “Its strategic connectivity, coupled with ongoing infrastructure development and the promise of a well-planned urban ecosystem, makes it incredibly attractive to both end-users and institutional investors looking for sustained capital appreciation. We are seeing a healthy influx of funds directed towards high-quality residential projects along this crucial artery,” he said.
Market observers said that the diversified investment across various segments paints a picture of a robust and dynamic real estate landscape poised for sustained growth.
Ashwani Kumar of Pyramid Infratech, said that the capital inflows demonstrate a holistic confidence across various segments. On the residential front, micro-markets like Dwarka Expressway and SPR are witnessing unprecedented demand, driven by aspirational homebuyers and long-term investors alike.
“For commercial and retail, the improved infrastructure and demographic shifts in these corridors are creating fertile ground for new developments, translating into robust investment opportunities. The shift towards domestic capital signifies a deepening trust in India’s inherent economic strengths and real estate fundamentals,” he said.
Kumar added that this surge in domestic capital inflow, supported by a clear preference for residential, office, and the growing mixed-use and retail segments, underscores a pivotal moment for Indian real estate.
“It highlights a market that is not only resilient to global uncertainties but is also evolving, with home-grown investors recognizing and capitalizing on the immense potential within their own borders,” he said.
Source: Money Control
