New Delhi, Jan 15 (IANS) Institutional investment in India’s real estate market reached a record $8.1 billion in 2025, anchored by an all-time high quarterly investment of $3.73 billion in the fourth quarter, a report said on Thursday.

The report from Vestian said the total institutional investments in 2025 was up 19 per cent from 2024 and 88 per cent from 2023, with fourth‑quarter inflows rising 112 per cent from the previous quarter.

Commercial assets accounted for the largest share, drawing 63 per cent of total investments in 2025, up from 35 per cent in 2024 and rising 113 per cent in value to nearly $5.1 billion, the report said. Commercial assets also attracted 61 per cent of fourth‑quarter inflows and were valued at $2.3 billion, owing to demand from global capability centres, the firm said.

Further, 13 per cent of the total quarterly investments were allocated towards sustainable project development, signalling investors’ decisive push to embed sustainability into real estate development.

Residential investment rose 129 per cent YoY to $438.4 million in the fourth quarter, while industrial and warehousing investments surged to $615.4 million, over seven times the prior quarter, reflecting strong demand for logistics parks amid peak domestic consumption, the firm said.

Foreign investments surged by more than ten times to $1.54 billion in Q4 2025, compared to the previous quarter, where over 20 per cent of the quarterly investments were dedicated towards sustainability.

As foreign investors remained cautious amid global uncertainties, co‑investments between foreign and domestic investors climbed 90 per cent QoQ to $1.38 billion, the firm added.

“Record institutional investment in 2025 reinforces sustained investor confidence in India’s long‑term fundamentals,” said Shrinivas Rao, FRICS, CEO, Vestian.

As capital increasingly aligns with sustainability-led development, sustained GCC-driven occupier demand, and rising domestic participation, Indian real estate continues to evolve into a resilient, diversified, and future ready investment market, he added.

—IANS

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