Domestic investors drove 60% of Q1 2025 inflows, rising 75% YoY to $800M, focusing on industrial and office spaces.

India’s real estate sector has witnessed a significant jump in institutional investment, with total inflows reaching $1.3 billion in the first quarter of 2025 — a 31% increase compared to $995 million recorded during the same period last year, according to a report by Colliers.

This notable rise has been largely driven by domestic investors, who contributed around 60% of the total capital inflow this quarter. Domestic investments alone surged by 75% year-on-year to hit $800 million, with a strong focus on the industrial & warehousing and office segments.

The residential real estate sector also stood out this quarter, experiencing a staggering 195% jump in institutional investments, totaling nearly $303 million. While the office segment saw a dip of 23% to $434 million, the industrial and warehousing sector recorded a healthy 73% increase with inflows touching approximately $308 million between January and March 2025.

Binitha Dalal, Founder and Managing Partner at Mt. K Kapital, attributed this growth to the maturing Indian real estate market and rising preference for structured investment platforms like AIFs (Alternative Investment Funds), which offer professional management and clearer regulatory frameworks. She noted that such investments reflect growing investor confidence in the returns and long-term potential of the real estate sector.

“At Mt. K Kapital, we are seeing an increasing appetite for structured real estate deals, driven by sound market fundamentals and a focus on value creation,” Dalal said.

Interestingly, the residential sector accounted for 23% of total institutional investments this quarter—almost on par with industrial & warehousing—and saw a significant portion of foreign investments through select large transactions.

Ankur Jalan, CEO of Golden Growth Fund (a Category II AIF), emphasized that despite global uncertainties, investor interest in Indian real estate remains strong. “With inflation easing, interest rate cuts anticipated, and solid economic growth on the horizon, the Indian real estate market is becoming increasingly attractive for both domestic and global institutional investors,” he stated.

City-wise, Mumbai attracted the highest investments with about $300 million, representing 22% of the total capital inflow. Bengaluru and Hyderabad followed closely, securing 20% and 18% of the share, respectively. Meanwhile, multi-city deals accounted for 31% of overall investments.

Experts believe this upward trend is likely to continue throughout 2025, fueled by positive business sentiment, expanding economic prospects, and sustained demand across different asset classes. Upcoming monetary easing policies are also expected to encourage more capital inflows.

Highlighting the National Capital Region’s performance, Yashank Wason, Managing Director of Royal Green Realty, mentioned that NCR collected nearly 30% of the total inflows, thanks to rising demand along the Dwarka Expressway and for premium office spaces in Noida and Gurugram. “NCR is poised to lead investment trends this year, driven by foreign capital eyeing commercial real estate and improved infrastructure like the Jewar Airport. Sectors like luxury housing, logistics, plotted developments, and high-street retail are expected to attract more investor attention,” he added.

The consistent appreciation in residential prices, booming demand for luxury housing, and ongoing infrastructure upgrades will likely sustain investor interest in the upcoming quarters as well.

Robin Mangla, President of M3M India, emphasized the resilience and growth potential of Indian real estate. “With luxury and commercial segments gaining momentum, backed by strong fundamentals and increasing investor confidence, institutional investments will continue transforming the sector. This growth supports not just developers, but also infrastructure, job creation, and overall urban development,” he said.

With supportive policies and a positive investment outlook, the Indian real estate sector appears well-positioned for long-term and sustainable growth across various asset classes.

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The ruling serves as a precedent for similar cases in the future, offering much-needed clarity on the legal treatment of gift and settlement deeds in India.

A bitter property dispute that spanned nearly three decades between a brother and sister has finally been resolved by the Supreme Court of India. At the heart of the legal battle was the question of whether a document executed by their late father in 1985 was a gift deed or a will. The father had registered a deed stating that his daughter would receive the property after the death of both parents. However, in 1993, he executed another deed cancelling the earlier one and sold the property to his son. When the father passed away in 1995 without leaving a will, the sister challenged the validity of the cancellation and the subsequent sale deed. What followed was a prolonged legal tussle that made its way from the trial court to the high court, and eventually to the Supreme Court.

The Supreme Court, in its detailed ruling, examined the nature and intent of the 1985 document. It concluded that the deed was not a will—which is revocable and takes effect only after the death of the testator—but rather a gift deed in the form of a settlement that conveyed the property in the present, even if possession was deferred until after the parents’ demise. The Court emphasised that once a gift deed is accepted, it becomes legally binding and cannot be cancelled unilaterally, unless there are explicit provisions in the deed or legal grounds to do so.

Key legal takeaways from the Supreme Court ruling

This landmark judgment lays down important legal principles in the context of property transfers, especially in familial settings. It highlights that the title or nomenclature of a document—whether termed as a gift deed, settlement, or will—is not the sole determinant of its legal status. Instead, courts will interpret the document based on its content, the intention of the person executing it, and whether there was an actual transfer of rights.

The ruling reinforces that in cases of gift or settlement deeds, physical delivery of possession is not mandatory to validate the transfer. What matters is whether the gift was accepted by the beneficiary and if the legal formalities—like registration and delivery of the document—were completed. The Court clarified that even if the donor retains a life interest (i.e., the right to enjoy the property during their lifetime), it does not undermine the fact that ownership has already been transferred to the donee.

Another crucial takeaway is that a donor cannot later revoke a gift deed on their own, unless the deed itself includes a revocation clause or there are grounds under the law—such as those mentioned in Section 126 of the Transfer of Property Act, 1882. The judgment protects the rights of donees from arbitrary actions by donors after the gift has been made and accepted. This ensures greater legal stability and certainty in transactions involving family property, where informal arrangements often lead to long-drawn litigation.

In essence, the Supreme Court has reaffirmed the sanctity of gift deeds and settlements executed out of natural love and affection, underscoring that such transfers, once legally completed, cannot be undone at the whims of the donor. The ruling serves as a precedent for similar cases in the future, offering much-needed clarity on the legal treatment of gift and settlement deeds in India.

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