<p>Bengaluru: The Indian real estate sector recorded institutional investments of $1.76 billion in the third quarter of 2025, the highest quarterly inflow of funds compared to any Q3 in the past four years. </p><p>While investments reported a marginal dip of 2 per cent over the previous quarter, investments rose by 83 per cent compared to the same period a year earlier. This underscores heightened investor confidence and resilience of the real estate sector despite global uncertainties.</p>.FDI up 15% to $18.62 billion in April-June 2025-26; inflows from US triple.<p>According to the latest research by Vestian, an occupier-focused workplace solutions firm, the commercial sector accounted for the largest share of investments (79%), surpassing its earlier record of 61% in the last quarter and 71% in the same quarter a year ago. In terms of value, investments soared to nearly $1.4 billion, registering a robust annual growth of 104%.</p><p>The residential sector attracted investments worth $191.7 million in Q3 2025, accounting for 11% of the total—down from 21% in the previous quarter. This reflects a sharp quarterly decline of 49%, despite registering a 6% year-on-year growth.</p><p>The industrial and warehousing sector accounted for a nominal 5% of the total institutional investments. However, investments surged by 168% over the previous quarter to $85.8 million, primarily due to the growing demand for logistics parks.</p><p>Shrinivas Rao, CEO, Vestian, said, “Driven largely by the commercial asset class, institutional investments in Indian real estate have surged by 83% year-on-year, reaffirming the sector’s strong resilience amid global headwinds. While foreign investors adopt a cautious approach, the significant rise in the share of domestic investments and co-investments underscores the growing confidence of domestic investors in India’s growth story.”</p><p>Amid persistent global economic pressures and policy uncertainties, the share of foreign investments dropped significantly to a yearly low of 8%. On the other hand, the share of domestic investments surged to a significant high of 51%, marking a 115% annual and 166% quarterly increase in terms of value. Foreign investors, while cautious due to global uncertainty, chose to invest in collaboration with local expertise, boosting the share of co-investments to 41% in Q3 2025 from 15% a quarter earlier.</p>
<p>Bengaluru: The Indian real estate sector recorded institutional investments of $1.76 billion in the third quarter of 2025, the highest quarterly inflow of funds compared to any Q3 in the past four years. </p><p>While investments reported a marginal dip of 2 per cent over the previous quarter, investments rose by 83 per cent compared to the same period a year earlier. This underscores heightened investor confidence and resilience of the real estate sector despite global uncertainties.</p>.FDI up 15% to $18.62 billion in April-June 2025-26; inflows from US triple.<p>According to the latest research by Vestian, an occupier-focused workplace solutions firm, the commercial sector accounted for the largest share of investments (79%), surpassing its earlier record of 61% in the last quarter and 71% in the same quarter a year ago. In terms of value, investments soared to nearly $1.4 billion, registering a robust annual growth of 104%.</p><p>The residential sector attracted investments worth $191.7 million in Q3 2025, accounting for 11% of the total—down from 21% in the previous quarter. This reflects a sharp quarterly decline of 49%, despite registering a 6% year-on-year growth.</p><p>The industrial and warehousing sector accounted for a nominal 5% of the total institutional investments. However, investments surged by 168% over the previous quarter to $85.8 million, primarily due to the growing demand for logistics parks.</p><p>Shrinivas Rao, CEO, Vestian, said, “Driven largely by the commercial asset class, institutional investments in Indian real estate have surged by 83% year-on-year, reaffirming the sector’s strong resilience amid global headwinds. While foreign investors adopt a cautious approach, the significant rise in the share of domestic investments and co-investments underscores the growing confidence of domestic investors in India’s growth story.”</p><p>Amid persistent global economic pressures and policy uncertainties, the share of foreign investments dropped significantly to a yearly low of 8%. On the other hand, the share of domestic investments surged to a significant high of 51%, marking a 115% annual and 166% quarterly increase in terms of value. Foreign investors, while cautious due to global uncertainty, chose to invest in collaboration with local expertise, boosting the share of co-investments to 41% in Q3 2025 from 15% a quarter earlier.</p>