Institutional investments in Indian real estate hit record $8.1 billion in 2025: Vestian
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India’s real estate sector saw a strong surge in investments in 2025, with institutional funding touching a record $8.1 billion, according to Vestian research. The final quarter of the year was the biggest driver, as investments hit an all-time high of $3.73 billion, more than doubling from the previous quarter.
“The record USD 8.1 billion in institutional investments recorded in 2025 reinforces sustained investor confidence in India’s long-term economic fundamentals. As capital increasingly aligns with sustainability-led development, sustained GCC-driven occupier demand, and rising domestic participation, Indian real estate continues to evolve into a resilient, diversified, and future ready investment market,” Shrinivas Rao, FRICS, CEO, Vestian, said.
Compared to 2023, institutional investments jumped 88%, and were also 19% higher than in 2024. A key highlight was the growing focus on green development, with 13% of total investments in the December quarter going into sustainable real estate projects.
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Commercial properties attract more funds
Furthermore, according to the Vestian, the commercial properties continued to attract more funds. They accounted for 63% of total investments in 2025, up sharply from 35% a year ago, with funding rising to nearly $5.1 billion. Demand from global capability centres helped keep commercial assets in focus in the last quarter as well, where they made up 61% of investments worth $2.3 billion. Residential real estate also saw a rise in value, with investments increasing 129% to $438.4 million in the final quarter, even though its overall share stayed largely unchanged.
Sharp jump in industrial and warehousing segments
The industrial and warehousing segment recorded a sharp jump, with investments rising more than seven times quarter-on-quarter to $615 million in Q4 2025. The study suggests that this was driven by strong demand for logistics parks as domestic consumption picked up across the country.
Foreign investments also rose sharply, increasing over tenfold to $1.5 billion in the December quarter. More than 20% of this foreign capital was directed towards sustainable projects, showing growing interest in green buildings.
At the same time, domestic investors remained confident, pushing total local investments in 2025 up by 18% year-on-year to nearly $2.4 billion.