Investment in Indian Real Estate Q2 2025

Key Insights

Indian real estate sector received institutional investments of USD 1.80 Bn in Q2 2025, registering a 42% yearly decline from the highest-ever investments recorded in any quarter. However, investments more than doubled, recording a sharp 122% growth over the previous quarter. These sustained investment activities during Q2 2025 highlight the Indian real estate sector’s resilience amid global economic uncertainties. These investments were mainly powered by India’s stable macroeconomic growth, softening headline inflation, and lower levels of mortgage rates.
Commercial assets, particularly retail, office space, and hospitality, led investment activities this quarter, with total investments in the segment more than tripling compared to the previous quarter. The demand for income-generating, high-quality assets in core urban markets is likely to increase amid a global macroeconomic slowdown.
The share of foreign investors declined from 71% in Q2 2024 to 66% in Q2 2025. In terms of value, foreign investments dropped by 46% to USD 1.19 Bn from USD 2.21 Bn. However, foreign investments rebounded sharply by 245% over the previous quarter, indicating renewed interest from foreign investors after a subdued previous quarter.
The share of domestic investments slipped to 19%, with a 47% yearly decline in value, highlighting subdued activities among local investors.

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