Real estate sector sees $4.7 bn inflows in 2025, poised for 2nd highest annual inflow

India's real estate sector attracted $4.7 billion in institutional investment during the first three quarters of 2025, according to Cushman & Wakefield’s India Capital Markets Q3 2025 report. The figure represents a 10% fall compared to the previous year, but the market is expected to conclude the year with a total between $6 and $6.5 billion, which would be the second-highest annual inflow on record. Investment activity across major cities showed varied performance, with Mumbai registering the highest growth in inflows at 300% over the period.

In Mumbai, institutional interest spanned multiple asset classes. The residential sector led with $377.6 million in inflows, supported by redevelopment projects. The office space segment followed with $339.71 million, benefiting from resilient occupancy levels and renewed leasing activity. Logistics and industrial assets attracted $269.3 million, while mixed-use commercial projects, including offices and hospitality, drew $155 million. Data centres accounted for $54.6 million, illustrating rising investor appetite for alternative segments. Foreign capital comprised 67% of Mumbai’s inflows, with United States investors contributing $500 million and Japanese investors $297 million; domestic investors provided the remaining $398 million.

Across India, domestic institutional participation has grown to account for 48% of inflows between January and September 2025, up from a smaller share in previous years; foreign investors made up the remaining 52%. This shift has helped stabilise the market despite international volatility. Office assets remained the primary choice, constituting 35% of inflows, followed by residential (26%), retail (12%), and logistics and industrial (9%).