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<p data-start="107" data-end="351"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The Indian real estate sector saw a significant jump in institutional investments during April-June (Q2 2025), recording $1.80 billion in inflows &mdash; a 122% surge compared to the previous quarter, according to a report released Monday by Vestian.</span></p>
<p data-start="353" data-end="676"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Foreign investors, particularly from the US, Japan, and Hong Kong, contributed nearly 89% of the foreign investments during this period. Around 69% of these funds were channeled into commercial real estate, while residential assets accounted for just 11%. The remaining investments were allocated to diversified properties.</span></p>
<p data-start="678" data-end="909"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">A notable trend in Q2 was the shift towards co-investments, which grew to 15% from 8% in the previous quarter, indicating a more cautious approach from global investors amid ongoing geopolitical tensions and economic uncertainties.</span></p>
<p data-start="911" data-end="1248"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Shrinivas Rao, FRICS, CEO of Vestian, noted that the sharp recovery in commercial real estate activity was the primary driver of this growth. Although annual figures remain below previous highs, the strong quarter-on-quarter rebound signals growing investor confidence, supported by solid macroeconomic fundamentals and sustained demand.</span></p>
<p data-start="1250" data-end="1541"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The report adds that this positive momentum is expected to continue, with multiple rating agencies projecting India&rsquo;s economic growth to exceed 6% in FY 2026. Additionally, the recent cut in the repo rate is likely to improve borrowing conditions and credit access in the real estate market.</span></p>
<p data-start="1543" data-end="1683" data-is-last-node="" data-is-only-node=""><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Domestic investors contributed $336 million, making up 19% of the total investment, a slight dip from 21% during the same quarter last year.</span></p>
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<div class="flex items-center justify-center"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]</span></div>
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US, Japan Lead Q2 Surge in India Real Estate

Foreign investors pour $1.8B into Indian realty in Q2; 89% from US, Japan & Hong Kong

US, Japan Lead Q2 Surge in India Real Estate

Foreign investors pour $1.8B into Indian realty in Q2; 89% from US, Japan & Hong Kong

July 7, 2025 | 17:10 IST