Domestic Capital Surges By 53% To $1.4 Billion In India's Real Estate Market, Accounts For 48% of Total Inflows In January-June Period

New Delhi: Domestic capital surged by 53 per cent to $1.4 billion in the country's real estate market, accounting for 48 per cent of the total inflows in the January-June period (H1 2025), a report showed on Thursday.

After a steady start in the first quarter, institutional investments in the Indian real estate witnessed a notable uptick during Q2 2025, at $1.7 billion, a 29 per cent rise on a sequential basis, said the report by Colliers.

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This mopped-up total investments in H1 2025 to $3.0 billion, reinforcing the sector’s resilience amidst ongoing global uncertainties.The investment volume remained above the half-yearly average of about $2.6 billion since 2021, reflecting sustained investor interest.

The report said that the growing share of domestic investments marks an ongoing shift in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across core asset classes.

"Domestic capital has emerged as a key driver in India’s real estate investments, with its share in total investments rising steadily from 16 per cent in 2021 to 34 per cent in 2024,” said said Badal Yagnik, Chief Executive Officer, Colliers India.

Over 60 per cent of domestic investments during H1 2025 were directed towards residential and office assets, reflecting sustained confidence in core segments.“As domestic capital deepens and diversifies, it is poised to bring greater stability and long-term confidence to India’s maturing real estate ecosystem,” Yagnik added.

Residential assets saw $0.8 billion of investments, driving 27 per cent of the inflows during H1 2025, followed by office assets, at 24 per cent share.Investments in mixed-use assets too witnessed a significant surge, accounting for more than 20 per cent share in the total inflows during H1 2025, up from 7 per cent share during the corresponding period in 2024, the report mentioned.

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Retail and alternative assets too saw a notable rise in investment inflows, cumulatively accounting for $0.5 billion, led by select large deals in H1 2025.“With REITs and other institutional players actively scouting for quality retail assets across key markets, investment activity in this segment is expected to gain further traction in the coming quarters,” said Vimal Nadar, National Director and Head of Research, Colliers India.

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