India’s real estate sector is undergoing a notable shift in investment dynamics: domestic capital is filling the void left by cautious global investors, signaling both resilience and recalibration. According to Colliers India, institutional inflows hit USD 3.0 billion in H1 2025, with 48% sourced from domestic players—a steep rise from 16% in 2021—while foreign investment dropped 39% year-on-year to USD 1.6 billion.
Domestic real-estate investments increased 53% YoY to USD 1.4 billion, driven by confidence in the sector’s fundamentals despite softer global sentiment. This uptick was particularly strong across residential, office, and mixed-use assets, supported by healthy end-user demand and evolving workplace dynamics. In contrast, private equity sprung select interest in the office segment, which attracted USD 706 million in H1 2025 as investors favored revenue-stable asset classes.
Experts note that the surge in domestic investment reflects a strategic rebalancing. “Domestic capital has become a stabilizing force,” said Colliers India CEO Badal Yagnik, spotlighting a shift toward long-term value and quality inventory. As global players tighten their budgets under high rates and liquidity pressures, India’s own institutional investors are stepping up, targeting land, housing, and integrated developments—signaling new momentum in India’s real estate funding landscape.
