New Delhi, 3 April (IANS). Institutional investment in India’s real estate sector made a strong start of 2025 to reach $ 1.3 billion in the first quarter. This information was given in a new report on Thursday.
According to a latest report by Colliers India, it shows a 31 percent increase compared to the same period of the previous year, which is mainly operated by domestic investors.
Domestic investment played an important role in this growth, which contributed $ 0.8 billion to an increase of 75 percent on an annual basis.
These investments were mainly towards industrial, warehousing and office space. The office segment alone attracted $ 0.4 billion to one third of the total investment.
Hyderabad emerged as a major market in this segment, which attracted more than half of the office related inflow. There was also a great growth in the residential area, with the investment of almost three times compared to the first quarter of 2024.
The region attracted $ 0.3 billion, which is 23 percent of the total investment. This figure is equivalent to the industrial and warehousing sector.
Interestingly, foreign investors led the surge in residential investment and contributed more than half to the total flow in the region.
The industrial and warehousing sector continued their strong performance from 2024 and recorded an investment of over $ 0.3 billion during the first quarter of 2025. This indicates a 73 percent increase on an annual basis.
Positive comprehensive economic indicators like India’s Manufacturing Purchasing Managers Index (PMI) reached 58.1 in March 2025. The highest level since mid -2024 has strengthened optimism in the region.
The report states that strong demand, high production and better business confidence have contributed to this growth.
Mumbai emerged as a top investment destination, with a share of $ 0.3 billion in the first quarter of 2025 or 22 percent of the total investment.
According to the report, Bengaluru is second with 20 percent stake, while Hyderabad earned 18 percent investment.
In Mumbai, mixed use properties attracted more than half of the total investment, while most of the investment in the residential area in Bengaluru.
City-wise data shows that investment in Mumbai has increased by 841 percent in Mumbai as compared to the first quarter of 2024, while Delhi-NCR has also increased significantly with a significant increase with 145 percent increase.
The report also found that in the same period, investment in Bangalore saw an increase of 26 percent consecutive percent.
-IANS
SKT/ABM
