At the national level, institutional investment inflows (across private equity and REITs) reached USD 4.7 billion year-to-date, underscoring continued investor confidence in India’s real estate story. The sector is well on track to close the year with around USD 6–6.5 billion, making 2025 potentially the second-best year on record for institutional investments in commercial real estate.
Domestic institutional participation has grown significantly over the past few years, now accounting for 48% of inflows between January and September - up from a smaller share previously. Foreign investors contributed the remaining 52%. This structural shift has helped offset volatility in cross-border capital flows and strengthened the market’s stability. Office assets remain the dominant choice for investors, accounting for 35% of YTD inflows, followed by residential (26%), retail (12%), and logistics & industrial (9%).
Somy Thomas, Executive Managing Director, Capital Markets, Cushman & Wakefield, said, "India’s retail sector is evolving at a dynamic pace, and the strong leasing activity in Q1 2025 reflects growing market confidence. We’re seeing a clear trend where retail demand is following new, quality supply—cities with fresh developments are witnessing heightened transaction volumes. Beyond traditional malls, new retail hubs are emerging within mixed-use developments, including office and residential complexes. With close to 7 million square feet of new supply expected over the next three quarters—largely comprising premium Grade A malls—we expect this positive momentum to continue well into the year."
Foreign capital accounted for two-thirds (67%) of Mumbai’s inflows at USD 797.7 million, led by investors from the United States (USD 500 million) and Japan (USD 297 million) — signaling strong confidence in the city’s fundamentals even as global capital flows remain selective. Domestic investors contributed the remaining USD 398 million, further diversifying the capital base.
Institutional interest in Mumbai extended across asset classes, reflecting the city’s increasingly diversified real estate ecosystem. The residential segment emerged as the primary recipient attracting USD 377.6 million inflows, largely driven by redevelopment projects. The office sector followed closely with USD 339.71 million, benefiting from continued occupier resilience and renewed leasing activity. The logistics and industrial segment received USD 269.3 million, underscoring the sector’s emergence as an alternative institutional play. Meanwhile mixed-use commercial projects (including office, hospitality and projects) saw inflows of USD 155 million and data centers attracted USD 54.6 Mn million, highlighting the widening investor appetite beyond traditional asset classes.
Mumbai’s sustained investment run is closely tied to its ongoing infrastructure transformation. Landmark projects such as the Mumbai Trans Harbour Link (Atal Setu), Mumbai Coastal Road, Metro network expansion, and the upcoming Navi Mumbai International Airport are reshaping connectivity and urban mobility, enhancing the city’s attractiveness as an investment destination.
This large-scale infrastructure spend has not only unlocked new micro-markets but also strengthened investor conviction in the city’s long-term growth narrative. Somy added:
"Mumbai’s investment story has come full circle, returning to pre-pandemic levels and crossing the USD 1 billion mark for the fourth year in a row. This resilience reflects strong fundamentals, infrastructure-led growth, and a diversified asset base that continues to attract both foreign and domestic capital. With transformative projects like the Trans Harbour Link and Coastal Road enhancing connectivity, investor confidence in Mumbai’s long-term growth remains robust. We expect this momentum to accelerate in the months ahead."