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 Energy

23 Dec 2025

Delhi HC Stays PGCIL Order against KEC International

KEC International has informed stock exchanges of a significant legal development concerning its eligibility to participate in tenders floated by Power Grid Corporation of India (PGCIL), in a disclosure made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations.The update follows the company’s earlier intimation dated November 18, 2025, regarding an order issued by PGCIL that excluded KEC International from participating in its tenders for a period of nine months. Challenging the said order, the company filed a writ petition before the Hon’ble High C..

Building Material

23 Dec 2025

LANXESS Advances Pigment Solutions for New-Age Concrete Technologies

LANXESS is deepening its engagement with next-generation concrete technologies by advancing research into the performance of iron oxide pigments across emerging construction applications, including self-compacting concrete (SCC), geopolymers and 3D-printed concrete. Through extensive investigations and long-term weathering tests, iron oxide pigments have proven their suitability for a wide range of concrete construction materials, though their use in new formulations requires a thorough understanding of construction chemistry and material interactions.According to Oliver Fleschentraeger, Techn..

Infrastructure Urban

23 Dec 2025

JHS Svendgaard to Invest Rs 250 Million in Kala Amb Expansion

JHS Svendgaard Laboratories (JHS), a leading Indian manufacturer of oral care products, has announced an investment of Rs 250 million to expand its manufacturing footprint in Kala Amb, Himachal Pradesh. The investment is aimed at strengthening production capacity, introducing advanced technologies and supporting the company’s next phase of growth in response to rising domestic and global demand.As part of the expansion plan, JHS will construct a new 100,000 sq ft manufacturing facility on its existing five-acre land parcel at Kala Amb. The project is expected to be executed over a two-year p..