Foreign funds avoid real estate; invest only $11 mn in Jan-Mar: Vestian

Domestic investors pumped in $ 541.1 million in the Indian real estate in January-March 2025, up 21 per cent from 446.9 million in the year-ago period

Institutional investments in real estate declined 55 per cent annually in January-March this year to USD 552 million as cautious foreign investors stayed away, pumping in only USD 11 mn, according to Vestian.

The real estate sector had attracted USD 1,238.3 million (USD 1.23 billion) in the January-March period of 2023 calendar year, as per the report, which was released on Saturday.

The latest data by global property consultant Vestian showed that the institutional inflow from foreign funds in the country's real estate plunged 99 per cent to just USD 11 million in the first quarter of 2024 from USD 791.4 million in the year-ago period.

Domestic investors pumped in USD 541.1 million in the Indian real estate in January-March 2025, up 21 per cent from 446.9 million in the year-ago period.

Vestian CEO Shrinivas Rao, said, "Domestic investors are bullish about India's growth story, and continue to pour in investments in the real estate sector. On the other hand, foreign investors are cautious due to global macroeconomic uncertainty and geopolitical tensions."

Commercial assets (office, retail, co-working, and hospitality projects) garnered the highest investments of USD 231.6 million in the March quarter, as against USD 484.8 million in the year-ago period.

Institutional investments in residential assets fell 33 per cent to USD 225 million from USD 337.7 million.

Investments significantly decreased 73 per cent in the industrial and warehousing sector to USD 58.9 million in the January-March period from USD 215.8 million a year ago.

Bengaluru dominated the institutional investments during the quarter with USD 299 million, followed by Delhi-NCR at USD 110 million.

Both cities together accounted for around 74 per cent of the total investments received in the current quarter.

Edelweiss Capital turned out to be the most active investor during the quarter with over USD 300 million worth of investments across the asset classes and geographies, Vestian said.

"The Indian real estate sector is expected to garner increased investments in the coming months on the back of a strengthened economic scenario and robust demand," Rao said on the investments outlook.