Domestic Institutions Lead Real Estate Investment in Q1-2025
India’s GDP grew by 6.2% in the quarter ended December 2024, rising from the 5.6% growth witnessed in the previous quarter. Institutional investment activity in real estate recorded a total of INR 100 bn (USD 1.15 bn). Domestic investors held a 66% share, while foreign investors contributed the remaining 34%. The residential sector was most attractive, having received a 46% share of institutional inflows, followed by the office sector (30%) and retail sector (14%). Despite the presence of current global uncertainties, the outlook for 2025 remains positive for real estate investments in India:
- For FY26, the Reserve Bank of India (RBI) has projected India’s real GDP growth at 6.5 per cent, with risks evenly balanced.
- Global economic uncertainty stemming from a potential disruption of global trade could result in foreign PE investors adopting a go-slow approach, although this is likely to reverse soon.
- With another sizeable office REIT filing for an IPO, India’s total listed REIT portfolio will comprise 174 MSF of office and retail assets, rendering it a formidable market within the APAC region.
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