Foreign capital in real estate drops 88 per cent in Q3

31 Oct 2025 CW Team

Foreign investment accounted for only 8 per cent of total institutional inflows in Q3 2025 — the lowest annual share — reflecting persistent global economic uncertainty.

The value of foreign investments fell to $141 million, a sharp 88 per cent decline from the previous quarter (Q2 2025) and a 68 per cent drop compared with Q3 2024.

Despite this pullback, the overall sector remained resilient, attracting $1.76 billion in institutional investments, an 83 per cent year-on-year rise, driven by strong domestic participation and strategic co-investments.

India-focused investments surged to 51 per cent of total inflows, or $892 million, marking a 166 per cent quarterly and 115 per cent annual increase. Meanwhile, co-investments — joint funding between foreign and domestic players — climbed to 41 per cent ($727 million) from just 15 per cent in Q2 2025.

Shrinivas Rao, FRICS, CEO of Vestian, said, “While foreign investors are adopting a cautious stance due to global headwinds, the surge in domestic and co-investments reflects the growing confidence of Indian investors in the country’s long-term growth story.”

The commercial real estate segment remained dominant, capturing 79 per cent of total inflows, amounting to nearly $1.4 billion, representing a 104 per cent annual growth.

In contrast, the residential sector’s share dropped to 11 per cent ($192 million), showing a 49 per cent quarterly decline. The industrial and warehousing segment, though smaller at 5 per cent, registered a 168 per cent quarterly surge, driven by increased demand in logistics infrastructure.

India’s real estate sector reported a strong overall performance in institutional investments during the third quarter of 2025 (Q3 2025), reaching a four-year high. However, this growth was overshadowed by a steep decline in foreign capital, according to a new report by Vestian. Foreign investment accounted for only 8 per cent of total institutional inflows in Q3 2025 — the lowest annual share — reflecting persistent global economic uncertainty. The value of foreign investments fell to $141 million, a sharp 88 per cent decline from the previous quarter (Q2 2025) and a 68 per cent drop compared with Q3 2024. Despite this pullback, the overall sector remained resilient, attracting $1.76 billion in institutional investments, an 83 per cent year-on-year rise, driven by strong domestic participation and strategic co-investments. India-focused investments surged to 51 per cent of total inflows, or $892 million, marking a 166 per cent quarterly and 115 per cent annual increase. Meanwhile, co-investments — joint funding between foreign and domestic players — climbed to 41 per cent ($727 million) from just 15 per cent in Q2 2025. Shrinivas Rao, FRICS, CEO of Vestian, said, “While foreign investors are adopting a cautious stance due to global headwinds, the surge in domestic and co-investments reflects the growing confidence of Indian investors in the country’s long-term growth story.” The commercial real estate segment remained dominant, capturing 79 per cent of total inflows, amounting to nearly $1.4 billion, representing a 104 per cent annual growth. In contrast, the residential sector’s share dropped to 11 per cent ($192 million), showing a 49 per cent quarterly decline. The industrial and warehousing segment, though smaller at 5 per cent, registered a 168 per cent quarterly surge, driven by increased demand in logistics infrastructure.

Infrastructure Urban

13 Mar 2026

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Infrastructure Urban

13 Mar 2026

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Infrastructure Urban

13 Mar 2026

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..