Institutional investments in Indian real estate are set to exceed 2023 levels, according to Colliers’ Asia Pacific Report, “2025 Global Investor Outlook.” This growth is driven by strong investments in the office, industrial and warehousing, and residential sectors.
In the first three quarters of 2024, investments reached $4.7 billion, accounting for 87% of the total inflows for the entire year of 2023. This momentum indicates a promising outlook for institutional investments across various real estate asset classes in 2025.
Since 2021, institutional inflows have totaled $19 billion, with investment volumes increasing each year. This growth is fueled by rising demand across core real estate segments. While office assets have accounted for over 40% of inflows during the last four years (2021–2024), both industrial and warehousing and residential sectors have gained momentum in recent years.
“The office sector is likely to have its best year in India, with record absorption fueled by Global Capability Centers (GCCs) and domestic demand. The residential sector is witnessing strong end-user sales. Equity capital in Indian real estate is now more diversified, with an increasing share of domestic capital,” said Piyush Gupta, Managing Director, Capital Markets and Investment Services at Colliers India.
Vimal Nadar, Senior Director and Head of Research at Colliers India, noted that the evolving real estate landscape in India offers compelling opportunities for investors across both core and non-core segments in 2025. He added that the office sector will continue to present increased opportunities in developmental assets, while rising and evolving consumption patterns and strong demand from e-commerce and third-party logistics (3PL) players will bolster the industrial and warehousing sector.
“Residential real estate, meanwhile, is likely to witness increased investor participation in joint venture platforms and redevelopment projects in Tier I cities. Additionally, with evolving demographic patterns, investments in alternatives such as data centers, senior living, student housing, schools, life sciences, holiday homes, etc., will continue to hold immense long-term potential,” he added.
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The “2025 Global Investor Outlook” is based on interviews with senior Colliers experts and a survey of around 1,000 property investors conducted in October and November 2024, nearly 400 of whom were from the Asia-Pacific region.
