The United States, Japan, Hong Kong drive foreign investment into India's real estate market
- IBEF
- July 8, 2025
The United States (US), Japan and Hong Kong accounted for 89% of foreign institutional investment in India’s real estate market during the Q2 2025, driving a significant 242% QoQ increase from Rs. 2,982 crore (US$ 347 million) in Q2 2024 to Rs. 10,226 crore (US$ 1.19 billion) in Q2 2025, according to workplace solutions firm Vestian. Of these investments, 69% were directed towards commercial assets, demonstrating strong investor confidence in India’s commercial real estate sector. The remaining funds were spread across diversified properties and residential assets, underscoring a broad-based interest in India’s real estate landscape. This sharp rise in foreign investments reflects renewed investor optimism, supported by robust macroeconomic fundamentals and steady demand growth.
Chief Executive Officer of Vestian, Mr. Shrinivas Rao, highlighted that the institutional investment recovery in Q2 2025 was driven by enhanced foreign participation and a favourable economic outlook. He highlighted that foreign investors are shifting from direct investments to co-investments, whose share nearly doubled to 15%, indicating a more risk-averse stance amid global uncertainties. Looking ahead, he expressed optimism that economic growth exceeding 6% in FY26, combined with recent repo rate cuts, will further improve borrowing conditions, and sustain momentum in the real estate sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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