Vestian: Investments soared amid global macroeconomic uncertainty; Foreign investors’ confidence resurrected
New Delhi, 22nd April 2025: Institutional investments in Q1 2025 reached USD
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 (USD 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 USD 506.1 Mn in Q1 2025.
Commercial assets witnessed
investments worth USD 307.2 Mn 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 (USD Mn) |
% 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, fueled by a stabilizing 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 USD 346.9 Mn in Q1 2025 from USD 11 Mn 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 USD 466.4 Mn,
registering an annual decline of 14%.
|
Investor Type |
Institutional Investments (USD Mn) |
% 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.
About
Vestian:
Vestian is an occupier-focused workplace solutions firm specializing in commercial, residential, industrial, retail and hospitality sectors. Headquartered at Chicago, Vestian has offices across US, India, China, UK, Sri Lanka and the Middle East. Our core strength lies in providing customized innovative solutions that are aligned to the client's business objectives.
Our extensive
service portfolio includes Investment & Consultancy Services, Transaction
Advisory Services, Project Services, Retail Business Solutions and Integrated
Facilities Management Services. Vestian is the only global workplace
solutions organization to be certified in both quality management systems and
environmental health & safety standards such as ISO 9001, ISO 14001, ISO
45001 and ISO 37001. For further information on the company, you can visit us
at www.vestian.com
