Particle.news

Download on the App Store

Domestic Investors Propel Indian Real Estate as Foreign Inflows Halve in Q2 2025

Local capital climbed 53% in H1 to cushion funding at $3 billion following a sharp pullback by overseas investors.

Image

Overview

  • Institutional investment slumped 33% year-on-year in Q2 to $1.69 billion, with foreign inflows nearly halving to $1.05 billion.
  • Domestic investors pumped in $642.8 million in Q2, a 32% year-on-year rise, and boosted their H1 contributions by 53% to $1.43 billion, accounting for 48% of total funding.
  • Sequential Q2 inflows rose 29% from Q1 to $1.7 billion, lifting H1 2025 investment to $2.998 billion despite a 15% year-on-year decline.
  • Residential and office assets drew over 60% of domestic capital in H1, while mixed-use investments surged to over 20% of total inflows from 7% a year earlier.
  • A diverse mix of family offices, pension funds, private equity, REITs and sovereign wealth funds underpinned domestic resilience as global economic headwinds restrained foreign capital.