Tuesday, November 11

Mumbai’s real estate sees $1.2 billion YTD institutional inflows in 2025

New Delhi, Nov 11 (IANS) Institutional investments in Mumbai’s real estate market crossed $1.2 billion in the first nine months of 2025, making it the fourth consecutive year the city has surpassed the billion‑dollar mark, a report said on Tuesday.

This performance signals Mumbai’s strong recovery and return to pre-pandemic investment levels, the report from real estate services firm Cushman & Wakefield said.

At the national level, institutional investment inflows across private equity and REITs reached $4.7 billion year‑to‑date.

Cushman and Wakefield forecasts the total inflows to touch roughly $6–6.5 billion in 2025, potentially making it the second‑best year on record for India’s commercial real estate.

Domestic institutions grew in the past few years, now accounting for 48 per cent of inflows between January and September, with foreign investors providing the remaining 52 per cent.

This structural shift has helped offset volatility in cross-border capital flows and strengthened the market’s stability, the firm noted.

Office assets remain the dominant choice for investors, receiving 35 per cent of year‑to‑date inflows, followed by residential at 26 per cent, retail at 12 per cent and logistics and industrial at 9 per cent.

“Even amid global uncertainty, institutional capital has found stability in India’s strong economic fundamentals, robust domestic demand, and credible governance frameworks,” Executive Managing Director, Capital Markets, Somy Thomas, said.

Thomas said that growing participation of domestic investors underscores the market’s maturity and confidence in India’s long-term growth story.

With transformative projects like the Trans Harbour Link and Coastal Road enhancing connectivity, investor confidence in Mumbai’s long-term growth remains robust, Thomas noted, adding that the momentum is set to accelerate in the months ahead.

Foreign capital accounted for 67 per cent of Mumbai’s inflows, led by investors from the United States, followed by Japan. The residential segment emerged as the primary recipient, attracting $377 million of the total $797 million worth of inflows, largely driven by redevelopment projects.

–IANS

aar/vd