Foreign funds dip as Indian investors fuel real estate boom

What’s going on: Institutional investments in Indian real estate hit $1.76 billion in Q3 2025, rising 83% year-on-year.

However, global uncertainty dragged foreign inflows down to just 8%, their lowest level in four years.

Meanwhile, India-focused investors stepped up, contributing over half of all new investments.

The takeaway: this shift signals a changing power dynamic where local investors now trust the long-term strength of India’s property market more than foreign funds do.

With co-investments (foreign + domestic partnerships) also soaring, the trend shows confidence is high, even if global money is cautious.

Where the money’s flowing: the commercial real estate sector took the lion’s share, grabbing nearly 80% of total inflows, followed by residential and warehousing, which are slowly catching up as demand for logistics hubs grows across India.