India’s real estate sector saw a significant upswing in institutional investment during the first quarter of 2025, with inflows jumping 31% year-on-year to reach USD 1.3 billion, according to a report by Colliers. This surge underscores growing investor confidence amid global economic shifts, positioning India as a resilient and promising real estate destination.

Commercial office space led the charge, accounting for nearly 48% (USD 624 million) of the total investments. Industrial and warehousing assets followed with 27% (USD 351 million), while residential real estate attracted 15% (USD 195 million). Foreign institutional investors dominated the capital mix, contributing around 72% of total inflows. Singapore, Canada, and the United States were among the top contributors. Domestic investors increased their share from 22% in Q1 2024 to 28%.

Delhi-NCR emerged as a top performer, drawing in USD 247 million—19% of total investments and a 45% rise from the same quarter last year. The region’s momentum is primarily driven by robust activity in both commercial and residential sectors. Grade-A office space absorption in Delhi-NCR is projected to grow by 18–20% this year, with Gurugram and Noida leading the expansion. Premium commercial spaces in the region also yield average rental returns of 7–8%, making them attractive to investors.

Residential real estate in Delhi-NCR is equally vibrant. Demand for mid- and luxury housing is surging while affordable housing projects gain traction in peripheral areas. A 24% increase in new launches compared to Q1 2024 indicates rising developer confidence. As per Colliers, Delhi-NCR could see institutional investments between USD 800–900 million by year-end, fueled by strategic infrastructure like the upcoming Jewar Airport and favourable policy frameworks.

Industry leaders see this investment boom as more than just financial momentum. “NCR has emerged as a clear frontrunner, collecting roughly 30% of these inflows,” said Yashank Wason, MD, Royal Green Realty. “Driven by a thriving residential renaissance along the Dwarka Expressway and demand for Grade-A workplaces in Gurugram and Noida, NCR is poised to lead investment trends in 2025.”

Rahul Singla, Director of Mapsko Group, emphasized the broader implications of this growth. “This isn’t just about capital inflows. It’s a sign of confidence in India’s urban growth and infrastructure. Developers now have the opportunity—and responsibility—to elevate industry standards and integrate sustainable practices.”

Ashish Sharma, AVP of Operations at Brahma Group, echoing this sentiment, noted, “The office segment continues to attract investors due to a growing demand for premium workspaces and global capability centres. At the same time, luxury and mid-segment housing draws strong interest, supported by stable appreciation and rental yields.”

With strong fundamentals, policy support, and increasing global trust, India’s real estate market appears set for continued momentum through 2025. The institutional capital pouring in is shaping skylines and redefining urban living for a new era.