Institutional Capital Powers Indian Property Sector with 80 Billion Dollar Inflows

September 12, 2025: The Indian real estate sector has drawn nearly $80 billion in institutional investments over the past 15 years, with foreign investors contributing a dominant 57% share, according to a joint report released by the Confederation of Real Estate Developers’ Associations of India (CREDAI) and real estate consultancy Colliers India.

The report, Indian Real Estate: Fostering Equity and Fuelling Economic Growth, was launched on Thursday during CREDAI’s annual convention, NATCON. CREDAI, the apex body representing over 13,000 real estate developers across the country, highlighted the sector’s growing role in shaping India’s urban future.

The institutional inflows span a wide range of sources including pension funds, sovereign wealth funds, private equity, family offices, foreign corporate groups, banks, real estate funds, listed REITs and foreign-funded NBFCs. Significantly, domestic capital has also seen an upsurge since the Covid-19 pandemic.

The report projects that the Indian real estate market could expand to between 5 trillion dollar and 10 trillion dollar by 2047, underscoring its pivotal role in driving the nation’s economic transformation.

CREDAI President Shekhar Patel remarked, “By 2047, Indian real estate will not just be measured in square feet or asset values — it will be defined by the quality of life we create for millions of citizens. The sector is uniquely positioned to reimagine India’s urban future by designing climate-resilient cities, building affordable yet aspirational homes, and fostering inclusive ecosystems.”

Colliers India CEO Badal Yagnik added that the sector is poised for decades of accelerated growth across asset classes, driven by favourable policies, sustained demand and rising investor confidence. Grade A office and industrial stock is projected to cross two billion sq ft by 2047, while annual residential sales could double to one million units.

Source: Business Standard

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