India Market Monitor Q2 2025 - Investments

Investment activity witnessed an uptick in Q2 2025, driven by sustained momentum in land / development sites and capital deployment into built-up retail and office assets. Investment inflows were primarily fuelled by developers, followed by institutional investors, during the quarter.

Investment activity is projected to maintain its positive trajectory throughout 2025, primarily fuelled by capital deployment into built-up off¬ice and retail assets. Greenfield developments are likely to continue witnessing robust momentum in the upcoming quarters, with a healthy spread across the residential sector, mixed-use assets, data centres, and the I&L segment. Opportunistic bets are gaining momentum for other sectors, such as office and retail, due to the limited availability of investible core assets for acquisition.

The second half of 2025 is expected to witness an acceleration in real estate investment activity, driven by the anticipated improvements in global economic conditions and the deployment of dry powder accumulated from an active exit market in 2024. We also anticipate equity inflows will continue to predominantly target metropolitan and tier-I cities in the coming quarters.

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