India's Real Estate Investments Jump 47% in Q1 2025

India's real estate sector experienced a robust 47% year-on-year surge in institutional investments during the first quarter of 2025, reaching approximately $0.81 billion. The residential segment led this growth, accounting for 62% of total investments and registering a 125% annual increase in value, while commercial real estate also saw a 33% rise in investment despite a slight decrease in its overall share. Notably, the industrial and warehousing sector did not attract significant funding during the quarter, but analysts expect future interest driven by e-commerce expansion and logistics improvements. A dramatic shift was seen in investor composition, with foreign participation rising from just 2% to 43% and foreign capital inflows soaring over thirtyfold to $346.9 million, while domestic investors' share fell to 57%. This uptick in both scale and diversity of investment reflects growing international confidence in India's economic trajectory, infrastructure development, and policy environment. Market analysts anticipate sustained momentum as infrastructure projects and policy stability continue to support long-term returns.