Summary :

The US, Japan, and Hong Kong contributed 89% of foreign institutional investments in India’s real estate market in Q2 2025, driving a sharp 242% quarter-on-quarter rise—from ₹2,982 crore (US$ 347 million) in Q2 2024 to ₹10,226 crore (US$ 1.19 billion), as per workplace solutions firm Vestian. Around 69% of these investments went into commercial assets, showing strong investor confidence in India’s commercial real estate. The rest was directed towards residential and diversified properties, reflecting broad interest in the sector. Vestian CEO, Mr. Shrinivas Rao, noted that this rebound was fueled by higher foreign participation and a positive economic outlook. He also pointed out a shift from direct investments to co-investments, with their share nearly doubling to 15%, indicating cautious investment amid global uncertainties. He remains optimistic that over 6% economic growth in FY26, along with recent repo rate cuts, will boost borrowing and keep the real estate momentum going.

Source: IBEF

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