Booming Indian Real Estate Sees Record Q3 Investments Despite Global Caution

The Indian real estate sector witnessed a record high in institutional investments during Q3 of 2025, garnering USD 1.76 billion. While commercial real estate remains dominant, domestic investments rise sharply, marking a pivotal shift as foreign investment wanes due to global uncertainties.

In a groundbreaking development for the Indian real estate sector, institutional investments soared to USD 1.76 billion in the third quarter of 2025, marking the highest Q3 inflow in four years, according to Vestian's latest report. Despite a slight two per cent decline from the previous quarter, the sector experienced a remarkable 83 per cent year-on-year growth.

Dominating the investment landscape, the commercial segment accounted for a substantial 79 per cent of total inflows, reaching USD 1.4 billion and achieving a 104 per cent annual growth. Meanwhile, the residential sector attracted USD 191.7 million, despite a quarterly drop of 49 per cent, showing resilience with a six per cent increase from Q3 2024. The industrial and warehousing sector, although modestly contributing five per cent, witnessed a striking 168 per cent quarterly surge due to heightened logistics and storage demand.

Shrinivas Rao, CEO of Vestian, highlighted the investor confidence, stating, "Despite global uncertainties, the robust rise in domestic and co-investments underscores a strong belief in India's growth potential." Notably, foreign investment dipped to a historical low of eight per cent, as domestic investments surged to 51 per cent of total inflows, reflecting a 115 per cent annual and 166 per cent quarterly increase. Co-investments also surged to 41 per cent this quarter, indicating a strategic shift towards collaboration between local and international players.

(With inputs from agencies.)