New Delhi: Institutional investment in India’s real estate sector hit $1.3 billion in Q1 2025, marking a 31% YoY increase, according to a report by Colliers India in April. The growth was largely fueled by domestic investors, who contributed $0.8 billion — a 75% rise compared to Q1 2024.

Sector-Wise Investment Highlights

Office Spaces: Attracted $0.4 billion, or one-third of total inflows.

Industrial and Warehousing: Maintained strong momentum with over $0.3 billion, up 73% YoY.

Residential Sector: Investment nearly tripled, reaching $0.3 billion (23%), led by foreign investors.

Hyderabad was a key draw for office space investment, while Mumbai led the pack overall with $0.3 billion, or 22% of total inflows. Bengaluru and Hyderabad followed with 20% and 18% shares, respectively.

City-Wise Investment Trends

Mumbai: Saw an 841% YoY surge in investments, with mixed-use assets receiving the bulk of capital.

Delhi-NCR: Recorded a 145% increase.

Bengaluru: Enjoyed a steady 26% rise, primarily in the residential segment.

Positive macroeconomic indicators — notably India’s Manufacturing PMI rising to 58.1 in March 2025, its highest since mid-2024 — contributed to the upbeat investor sentiment.