Investments Soared Amid Global Macroeconomic Uncertainty: Vestian

23 Apr 2025 CW Team

Quarters Institutional Investments

($Bn) Quarterly Change

(%)

Q1 2024 0.55 -31%

Q2 2024 3.10 464%

Q3 2024 0.96 -69%

Q4 2024 2.22 129%

Q1 2025 0.81 -63%

Source: Vestian Research

As investments approach the billion-dollar mark in Q1 2025, the residential sector has emerged as the frontrunner, dominating with 62% of the total share —up from 41% in the same period last year. In value terms, investments reported an annual increase of 125%, reaching $506.1 million in Q1 2025.

Commercial assets witnessed investments worth $307.2 million in Q1 2025, accounting for 38% of the total investments received during the quarter. While the share declined from 42% in Q1 2024 to 38% in Q1 2025, investments surged by 33% in value terms during the same period. Interestingly, the industrial & warehousing sector did not record any significant investment in Q1 2025. However, it is expected to garner investments in the future on the back of the rapidly growing e-commerce sector and a reduction in logistics costs.

Asset Type Institutional Investments

($million) % Share % Change

Q1 2025 Q4 2024 Q1 2024 Q1 2025 Q4 2024 Q1 2024 Q1 2025 vs

Q4 2024 Q1 2025 vs

Q1 2024

Commercial 307.2 848.5 231.6 38% 38% 42% -64% 33%

Residential 506.1 908.5 225.0 62% 41% 41% -44% 125%

Industrial & Warehousing Negligible 303.3 58.9 Negligible 14% 11% NA NA

Diversified Negligible 156.0 36.6 Negligible 7% 6% NA NA

Total 813.3 2,216.3 552.1 100% 100% 100% -63% 47%

Note: Commercial assets include office, retail, co-working, and hospitality projects.

Source: Vestian Research

While domestic investors remained confident about India’s growth story, the participation of foreign investors increased during Q1 2025. The share of foreign investors jumped from 2% in Q1 2024 to 43% in Q1 2025, fuelled by a stabilising global economy, India’s robust economic growth compared to the major economies of the world, and rapid infrastructure development. In value terms, foreign investments skyrocketed by 3,054% annually, reaching $346.9 million in Q1 2025 from $11 million a year earlier.

On the other hand, domestic investors dominated with 57% share in Q1 2025. However, their share dropped from 98% a year earlier. In terms of value, domestic investments stood at $466.4 million, registering an annual decline of 14%.

Investor Type Institutional Investments

($million) % Share % Change

Q1 2025 Q4 2024 Q1 2024 Q1 2025 Q4 2024 Q1 2024 Q1 2025 vs

Q4 2024 Q1 2025 vs Q1 2024

Foreign 346.9 1,051.8 11.0 43% 47% 2% -67% 3,054%

India-dedicated 466.4 458.5 541.1 57% 21% 98% 2% -14%

Co-investment Negligible 706.0 Negligible Negligible 32% Negligible NA NA

Total 813.3 2,216.3 552.1 100% 100% 100% -63% 47%

Note: Co-investment refers to joint funding by foreign and domestic investors.

Source: Vestian Research

Shrinivas Rao, FRICS, CEO, Vestian said, “Investor confidence in India’s growth story remains strong, with both foreign and domestic players showing increased commitment to long-term investments. This is evident in the growing share of foreign investors, along with the active participation of domestic investors. As investment activity continues to build momentum, we can expect a notable increase in future inflows, further reinforcing India's position as a dynamic and attractive investment destination.”

With key deals reaffirming confidence in the real estate sector, institutional investments are expected to maintain an upward trajectory, supported by rapid infrastructure development and economic stability.

Institutional investments in Q1 2025 reached $0.81 billion, marking a 47% year-on-year increase. This significant uptick reflects the strong fundamentals of the real estate sector and a renewed sense of confidence among investors.Quarters Institutional Investments($Bn) Quarterly Change(%)Q1 2024 0.55 -31%Q2 2024 3.10 464%Q3 2024 0.96 -69%Q4 2024 2.22 129%Q1 2025 0.81 -63%Source: Vestian ResearchAs investments approach the billion-dollar mark in Q1 2025, the residential sector has emerged as the frontrunner, dominating with 62% of the total share —up from 41% in the same period last year. In value terms, investments reported an annual increase of 125%, reaching $506.1 million in Q1 2025.Commercial assets witnessed investments worth $307.2 million in Q1 2025, accounting for 38% of the total investments received during the quarter. While the share declined from 42% in Q1 2024 to 38% in Q1 2025, investments surged by 33% in value terms during the same period. Interestingly, the industrial & warehousing sector did not record any significant investment in Q1 2025. However, it is expected to garner investments in the future on the back of the rapidly growing e-commerce sector and a reduction in logistics costs.Asset Type Institutional Investments($million) % Share % ChangeQ1 2025 Q4 2024 Q1 2024 Q1 2025 Q4 2024 Q1 2024 Q1 2025 vsQ4 2024 Q1 2025 vsQ1 2024Commercial 307.2 848.5 231.6 38% 38% 42% -64% 33%Residential 506.1 908.5 225.0 62% 41% 41% -44% 125%Industrial & Warehousing Negligible 303.3 58.9 Negligible 14% 11% NA NADiversified Negligible 156.0 36.6 Negligible 7% 6% NA NATotal 813.3 2,216.3 552.1 100% 100% 100% -63% 47%Note: Commercial assets include office, retail, co-working, and hospitality projects.Source: Vestian ResearchWhile domestic investors remained confident about India’s growth story, the participation of foreign investors increased during Q1 2025. The share of foreign investors jumped from 2% in Q1 2024 to 43% in Q1 2025, fuelled by a stabilising global economy, India’s robust economic growth compared to the major economies of the world, and rapid infrastructure development. In value terms, foreign investments skyrocketed by 3,054% annually, reaching $346.9 million in Q1 2025 from $11 million a year earlier.On the other hand, domestic investors dominated with 57% share in Q1 2025. However, their share dropped from 98% a year earlier. In terms of value, domestic investments stood at $466.4 million, registering an annual decline of 14%.Investor Type Institutional Investments($million) % Share % ChangeQ1 2025 Q4 2024 Q1 2024 Q1 2025 Q4 2024 Q1 2024 Q1 2025 vsQ4 2024 Q1 2025 vs Q1 2024Foreign 346.9 1,051.8 11.0 43% 47% 2% -67% 3,054%India-dedicated 466.4 458.5 541.1 57% 21% 98% 2% -14%Co-investment Negligible 706.0 Negligible Negligible 32% Negligible NA NATotal 813.3 2,216.3 552.1 100% 100% 100% -63% 47%Note: Co-investment refers to joint funding by foreign and domestic investors.Source: Vestian ResearchShrinivas Rao, FRICS, CEO, Vestian said, “Investor confidence in India’s growth story remains strong, with both foreign and domestic players showing increased commitment to long-term investments. This is evident in the growing share of foreign investors, along with the active participation of domestic investors. As investment activity continues to build momentum, we can expect a notable increase in future inflows, further reinforcing India's position as a dynamic and attractive investment destination.”With key deals reaffirming confidence in the real estate sector, institutional investments are expected to maintain an upward trajectory, supported by rapid infrastructure development and economic stability.

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