Foreign Investors Turn to Local Partnerships as India’s Real Estate Gets Inflows Of USD 1.76 Billion in September Quarter

New Delhi, October 28: Foreign investors are partnering with domestic entities to invest in India’s real estate. They are creating local partnerships to ensure they can limit global economic risks by having investments in India’s real estate sector. This comes after data from Vestian reported that co-investments in India’s real estate sector have increased to USD 726.58 million in the September 2025 quarter. This is a rise of 6.6 times year-on-year.

Shift From Direct to Co-investments

Direct investments by foreign entities dropped sharply by 68% to USD 140.69 million in the July–September quarter, compared with USD 436.47 million recorded during the same period last year. In contrast, domestic entities more than doubled their direct investments to USD 892.22 million, up from USD 414.55 million a year ago, marking a strong surge in local capital participation.

Institutional Investments Rise 83% YoY

Overall, there has been an 83% increase in institutional investments in the Indian real estate sector. The investments have reached USD 1,759.49 million year-on-year, up from USD 960.78 million in the same period last year. As per Vestian, this increase is due to a rise in investment activity in the commercial asset class, which includes real estate such as co-working and office spaces. The investments in the commercial asset class have increased from USD 684.47 million last year to USD 1,397.21 million.

The share of co-investments in the Indian real estate sector has increased to 41% during July–September 2025. In the previous quarter, this figure was 15%. This shows that foreign investors are choosing domestic partnerships to invest in India’s real estate sector, ditching the direct investment route.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations