Institutional investors are returning to India's residential real estate market with a sharp focus on mixed-use developments, encompassing residential, commercial, and retail spaces.
Investments surged to $191 million in Q1 2025, according to real estate services firm Colliers. The resurgence comes after a stark drop in the previous years, especially in 2023 when the mixed-use segment saw just $ 42 million in inflows. In contrast, the segment reached a peak of $1.6 billion in 2020, before being impacted by pandemic-induced uncertainties and delayed project execution.
"Mixed-use developments are fast becoming the cornerstone of urban expansion in India. They offer diversified revenue models across residential, commercial, and retail, which de-risk investment while providing long-term growth visibility," said Sankey Prasad, chairman & managing director, Middle East & India, Colliers. "Institutional investors are sensing that this is the right time to re-enter the market with scale and conviction."
Some of the most prominent transactions in the last quarter highlight this trend. Alpha Wave Ventures invested $148 million in Oberoi Realty's I-VEN Realty platform in Mumbai, while Hines and the Conscient Group committed $43.1 million into a mixed-use project by the Adventz Group in Delhi-NCR. These high-ticket deals mark a strategic shift by global institutional firms toward large, centrally located, mixed-use assets.
Private equity giant Blackstone's recent investment in Kolte-Patil Developers highlights the increasing confidence in the Indian residential market. Blackstone took a 40% stake in the Pune-based developer for about $134 million. This move signifies a strategic shift for the firm--which had predominantly focused on commercial properties in India-towards the growing housing market, specifically targeting the mid-income and premium segments.
Experts believe the attraction lies in the long-term scalability and demographic alignment of such developments. The rising share of mixed-use investments also reflects a broader transformation in buyer preferences with developers and investors now responding by focusing on large-format, master-planned communities.
Vipul Roongta, MD & CEO, HDFC Capital Advisors, noted that the rising share of mixed-use investments signals a broader shift in buyer preferences, with developers and investors now focusing on large, master-planned communities that offer convenience, connectivity, and cohesive urban living.
"Seamlessly connecting metros, roads, expressways, and highways are bringing Tier 2 and 3 locations closer, making larger projects more accessible, and integrating social infrastructure and workplaces. We are very bullish on this trend, as it aligns with our core investment theme: building high-quality, mid income residential developments near workplaces. These projects offer long-term scalability and resonate with India's evolving aspirational demographics," said Roongta.
According to experts, cities like Bengaluru, Chennai, and Gurugram are seeing integrated projects command better pricing than standalone developments.
"There's a visible appetite from both sides of the table-developers want to diversify and scale, and investors want secure, inflation-hedged assets with steady cash flows. With policy support for transit-oriented development and better infrastructure, the ecosystem is ripe for sustained growth in this segment," said Amit Bhagat, chief executive and managing director of ASK Property Fund.
Colliers recently mentioned that Q1 2025 marks one of the strongest quarters for mixed-use investment in recent years. If the current pace continues, total institutional investments in this segment could cross $ 400 million by year-end, significantly higher than previous years. It is expected to push the share of mixed-use developments in total real estate investments to 18-20% by the end of 2025, according to Colliers.
Industry observers that while the funding momentum is encouraging, execution remains critical. Investors are increasingly favouring developers with strong delivery track records, robust governance, and transparency.
Housing sales in the March quarter rose 2% to 88,274 units across eight major cities amid sustained demand for residential properties, according to Knight Frank.
Investments surged to $191 million in Q1 2025, according to real estate services firm Colliers. The resurgence comes after a stark drop in the previous years, especially in 2023 when the mixed-use segment saw just $ 42 million in inflows. In contrast, the segment reached a peak of $1.6 billion in 2020, before being impacted by pandemic-induced uncertainties and delayed project execution.
"Mixed-use developments are fast becoming the cornerstone of urban expansion in India. They offer diversified revenue models across residential, commercial, and retail, which de-risk investment while providing long-term growth visibility," said Sankey Prasad, chairman & managing director, Middle East & India, Colliers. "Institutional investors are sensing that this is the right time to re-enter the market with scale and conviction."
Some of the most prominent transactions in the last quarter highlight this trend. Alpha Wave Ventures invested $148 million in Oberoi Realty's I-VEN Realty platform in Mumbai, while Hines and the Conscient Group committed $43.1 million into a mixed-use project by the Adventz Group in Delhi-NCR. These high-ticket deals mark a strategic shift by global institutional firms toward large, centrally located, mixed-use assets.
Private equity giant Blackstone's recent investment in Kolte-Patil Developers highlights the increasing confidence in the Indian residential market. Blackstone took a 40% stake in the Pune-based developer for about $134 million. This move signifies a strategic shift for the firm--which had predominantly focused on commercial properties in India-towards the growing housing market, specifically targeting the mid-income and premium segments.
Experts believe the attraction lies in the long-term scalability and demographic alignment of such developments. The rising share of mixed-use investments also reflects a broader transformation in buyer preferences with developers and investors now responding by focusing on large-format, master-planned communities.
Vipul Roongta, MD & CEO, HDFC Capital Advisors, noted that the rising share of mixed-use investments signals a broader shift in buyer preferences, with developers and investors now focusing on large, master-planned communities that offer convenience, connectivity, and cohesive urban living.
"Seamlessly connecting metros, roads, expressways, and highways are bringing Tier 2 and 3 locations closer, making larger projects more accessible, and integrating social infrastructure and workplaces. We are very bullish on this trend, as it aligns with our core investment theme: building high-quality, mid income residential developments near workplaces. These projects offer long-term scalability and resonate with India's evolving aspirational demographics," said Roongta.
According to experts, cities like Bengaluru, Chennai, and Gurugram are seeing integrated projects command better pricing than standalone developments.
"There's a visible appetite from both sides of the table-developers want to diversify and scale, and investors want secure, inflation-hedged assets with steady cash flows. With policy support for transit-oriented development and better infrastructure, the ecosystem is ripe for sustained growth in this segment," said Amit Bhagat, chief executive and managing director of ASK Property Fund.
Colliers recently mentioned that Q1 2025 marks one of the strongest quarters for mixed-use investment in recent years. If the current pace continues, total institutional investments in this segment could cross $ 400 million by year-end, significantly higher than previous years. It is expected to push the share of mixed-use developments in total real estate investments to 18-20% by the end of 2025, according to Colliers.
Industry observers that while the funding momentum is encouraging, execution remains critical. Investors are increasingly favouring developers with strong delivery track records, robust governance, and transparency.
Housing sales in the March quarter rose 2% to 88,274 units across eight major cities amid sustained demand for residential properties, according to Knight Frank.
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