Yagnik further noted that institutional investments are expected to strengthen in the coming period.

Colliers Report: 16% Drop in Foreign Investment, Domestic Funds Surge

According to data released by Colliers India on Tuesday, foreign investment into Indian real estate fell 16 per cent to USD 3.65 billion in 2025. Institutional investments in the sector still rose 29 per cent to a record USD 8.47 billion last year despite the moderation in foreign capital inflows.

Colliers India’s report showed that overall institutional funding increased from USD 6.56 billion in 2024 to USD 8.47 billion in 2025, reflecting heightened activity and investor interest in Indian real estate. A major driver of this growth was the sharp rise in domestic institutional investments, which more than doubled to USD 4.82 billion from USD 2.24 billion in the previous year, reflecting strong local participation in Indian real estate, according to Colliers India.

“During the year, office assets continued to attract the bulk of the investments, accounting for 54 per cent of annual inflows, followed by residential,industrial, and warehousing assets,” said Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India.

The institutional flow of funds includes investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs, listed REITs and sovereign wealth funds, Colliers India said.

Yagnik further noted that institutional investments are expected to strengthen in the coming period, supported by expanding domestic capital, an improving global risk appetite and India’s strong economic fundamentals, according to the Colliers India report.

Source: The Tribune