Robust Investment Activity in Q2-25; Positive Outlook for FY-26
India’s GDP grew by 7.4% in the quarter ended Mar-25, rising from 6.4% in the previous quarter. Inflation dropped to 2.8% as of Jun-25, marking a 6-year low. Institutional investments activity in real estate stood at USD 2.05 bn (INR 175 bn), up 67% q-o-q. The residential sector was most attractive, receiving 24% share of inflows, followed by office (22%) and retail (19%). Early-stage investment had a 48% share in Q2-25, followed by 38% for core asset acquisitions and 14% share for under-construction projects. Despite a slow start to the year, foreign investors’ share in Q2-25 grew, standing at 68%, while domestic investors contributed the remaining 32%.
In Q2 2025, total fundraising reached USD 934 mn, marking a threefold increase year-over-year. Office-focused funds led the activity, accounting for 51% of the total capital raised. In H1-25, institutional investments crossed 46% of the overall activity recorded in 2024, which was a record year, suggesting a positive momentum for CRE investments.
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