₹10,226 Crore Foreign Investment in India’s Real Estate in Q2 2025: 89% from US, Japan and Hong Kong

India’s real estate sector witnessed a sharp revival in Q2 2025, recording a 242% quarter-on-quarter surge in foreign institutional investment. 

A significant portion of these funds was channelled into commercial assets, underlining investor confidence in the long-term prospects of India’s commercial property segment.

Significant Growth in Investment Inflows 

Data from workplace solutions firm Vestian reveals that foreign institutional investment in India’s real estate sector grew from ₹2,982 crore in Q2 2024 to ₹10,226 crore in Q2 2025. The United States, Japan and Hong Kong led this investment wave, accounting for 89% of the total inflows, as per news reports. 

This substantial increase marks one of the strongest quarterly performances in recent years and reflects renewed investor faith in India’s macroeconomic resilience and real estate demand.

Commercial Real Estate Takes the Lead

Out of the total ₹10,226 crore invested, 69% was directed towards commercial real estate. Office spaces, retail outlets and logistics hubs remain highly sought-after segments. This shows that investors continue to back India’s position as a business and services hub, particularly in top-tier cities where corporate demand remains high.

Residential and Diversified Segments Gain Traction

Beyond commercial spaces, a noteworthy portion of foreign capital also flowed into residential and diversified property assets. This broad-based interest suggests that investors are adopting a more balanced approach, betting on both short-term rental income and long-term capital appreciation opportunities in urban housing and mixed-use developments.

Economic Conditions Favour Investment Sentiment

India’s favourable economic indicators are playing a key role in attracting foreign investment. Recent reductions in the repo rate have improved borrowing conditions, while GDP growth forecasts exceeding 6% for FY26 are encouraging investor confidence. These macroeconomic tailwinds are providing strong support for continued inflows into the real estate sector.

Read More: Prestige Estates Acquires 100% Stake in Two Key Real Estate Firms! 

Conclusion 

With stable political leadership, sustained demand in real estate and supportive policy measures, India is likely to remain a key destination for global real estate investors. The evolving investment models and growing interest across segments indicate a promising outlook for the coming quarters.

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