Foreign, local co-investments in real estate surge over sixfold to $727 mn in last three months: Report

Foreign investors are partnering with local players to invest in Indian real estate to avoid risks amid global uncertainties, as their co-investment has jumped 6.6 times to USD 726.58 million during the latest September quarter, a report says.

According to data from Real estate consultant Vestian, the direct investment from foreign players fell 68 per cent to USD 140.69 million during July-September 2025, from USD 436.47 million in the year-ago period.

However, the co-investment by foreign and domestic players jumped to USD 726.58 million during the third quarter of this calendar year, from USD 109.76 million in the corresponding period of the preceding year.


Domestic players directly pumped USD 892.22 million during July-September 2025, a more than two-fold jump from USD 414.55 million in the year-ago period.

Overall, Vestian said that the total institutional investments in Indian real estate rose 83 per cent to USD 1,759.49 million during the third quarter of the current calendar year, from USD 960.78 million in the year-ago period.

"Driven largely by the commercial asset class, institutional investments in Indian real estate have surged by 83 per cent year-on-year, reaffirming the sector's strong resilience amid global headwinds," Vestian CEO Shrinivas Rao said.

Investments in commercial assets (office, retail, co-working, and hospitality projects) jumped two times to USD 1,397.21 million, from USD 684.47 million.

"While foreign investors adopt a cautious approach, the significant rise in the share of domestic investments and co-investments underscores the growing confidence of domestic investors in India's growth story," Rao added.

Amid persistent global economic pressures and policy uncertainties, the share of foreign investment dropped significantly to an annual low of 8 per cent, the Vestian report noted.

On the other hand, the share of domestic investments surged to a significant high of 51 per cent.

"Foreign investors, while cautious due to global uncertainty, chose to invest in collaboration with local expertise, boosting the share of co-investments to 41 per cent in July-September 2025 from 15 per cent a quarter earlier," the consultant said.

Headquartered in Chicago, Vestian has offices across the US, India, China, the UK, Sri Lanka and the Middle East.