Mumbai has firmly re-established itself as India’s leading gateway market for institutional real estate investment. According to Cushman & Wakefield’s India Capital Markets Q3 2025 report, the city recorded over USD 1.2 billion in institutional inflows during the first nine months of 2025 — marking the fourth consecutive year that Mumbai has crossed the USD 1 billion threshold.
This milestone indicates a full return to pre-pandemic investment momentum, driven by strong market fundamentals, infrastructure-led growth, and renewed confidence from both domestic and global investors.
Institutional Capital Flows Maintain Strong Momentum
At the national level, India witnessed USD 4.7 billion in institutional inflows (including private equity and REITs) in the first nine months of 2025. The market is poised to close the year with USD 6–6.5 billion, which would make 2025 the second-strongest year on record for institutional investments in commercial real estate.
The investment landscape is also becoming structurally stronger, with domestic institutions contributing 48% of inflows between January and September — a notable rise from earlier years. Foreign investors accounted for the remaining 52%, providing a balanced capital base.
Office assets remained the most preferred category for investors, accounting for 35% of year-to-date inflows. This was followed by residential (26%), retail (12%), and logistics & industrial (9%), reaffirming the depth and diversity of India’s real estate market.
“India’s real estate investment landscape continues to demonstrate remarkable resilience and depth,” said Somy Thomas, Executive Managing Director, Capital Markets, Cushman & Wakefield. “The growing participation from domestic investors reflects market maturity and confidence in India’s long-term growth trajectory.”
Mumbai Continues to Attract Global and Domestic Capital
Mumbai’s resilient investment performance was supported by a diverse investor base. Foreign capital formed 67% (USD 797.7 million) of total inflows, led largely by investors from the United States (USD 500 million) and Japan (USD 297 million). Domestic institutions contributed USD 398 million, further strengthening market stability.
Investment interest also diversified across asset classes:
Residential led with USD 377.6 million, buoyed by redevelopment-driven demand.
Office followed at USD 339.71 million, supported by steady leasing activity.
Logistics and industrial assets drew USD 269.3 million, highlighting the segment’s growing appeal.
Mixed-use commercial projects received USD 155 million.
Data centres attracted USD 54.6 million, reflecting an expanding digital infrastructure ecosystem.
Infrastructure: The Growth Catalyst
Mumbai’s sustained investment momentum is closely intertwined with ongoing urban transformation. Mega projects such as the Mumbai Trans Harbour Link (Atal Setu), the Coastal Road, the expanding Metro network, and the upcoming Navi Mumbai International Airport are reshaping connectivity, opening new micro-markets, and enhancing Mumbai’s competitiveness as a global commercial hub.
“Mumbai’s investment story has come full circle,” added Somy Thomas. “With infrastructure upgrades improving access and transforming urban mobility, investor confidence in the city’s long-term growth remains robust. We expect momentum to strengthen further in the coming quarters.”
Outlook
With sustained capital inflows, diversified investor participation, and transformative infrastructure projects underway, Mumbai’s real estate market is entering a new phase of stability and expansion. The city continues to offer compelling opportunities across asset classes, reaffirming its position as a preferred investment destination in India’s evolving real estate landscape.
Source: The Economic Times
