Institutional Investments Surge in Indian Real Estate, Yet Challenges Loom for 2025

Institutional investments in Indian real estate grew by 61% to USD 6.8 billion in 2024, largely due to foreign contributors. Despite this boost, experts warn of challenges in 2025 due to global economic and geopolitical issues. The residential sector received notable investment, significantly boosting its share.

Indian real estate experienced a surge in institutional investments, rising 61 percent to USD 6.8 billion last year, reports Vestian. While foreign investors composed the majority, the residential sector saw a remarkable 171 percent increase from the previous year.

However, uncertainty clouds 2025, as geopolitical tensions and a slowing global economy pose threats. Shrinivas Rao, CEO of Vestian, noted the difficulty of attracting funds due to elevated inflation levels and market unpredictability.

Experts suggest that a reduction in India's repo rate could stimulate further investment by drawing in investors seeking lower mortgage rates. Meanwhile, the commercial and industrial sectors showed steady contributions to the investment landscape.

(With inputs from agencies.)