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Gulf Today
5 days ago
- Business
- Gulf Today
Indian realty drives $1.4 billion domestic investment in first half
After a steady start in the first quarter, institutional investments in Indian real estate witnessed a notable uptick during the second quarter at $1.7 billion, a 29 per cent rise on a sequential basis. This mopped-up total investments in the first half of 2025 to $3.0 billion, reinforces the sector's resilience amidst ongoing global uncertainties. Although this marked a 15 per cent decline compared to H1 2024, the investment volume remained above the half-yearly average of about $2.6 billion since 2021, reflecting sustained investor interest, according to Colliers survey. While foreign investments saw a 39 per cent YoY decline, domestic capital surged by 53 per cent to $1.4 billion, accounting for 48 per cent of the total inflows in first half. The growing share of domestic investments marks an ongoing shift in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across core asset classes. 'Domestic capital has emerged as a key driver in India's real estate investments, with its share in total investments rising steadily from 16 per cent in 2021 to 34 per cent in 2024. In H1, 2025, domestic investments accounted for 48 per cent of the total inflows, surging by 53 per cent compared to H1 2024. Their growing dominance has helped cushion the impact of global uncertainties and push total investments to the $3.0 billion mark. Over 60 per cent of domestic investments during H1 were directed towards residential and office assets, reflecting sustained confidence in core segments.' 'As domestic capital deepens and diversifies, it is poised to bring greater stability and long-term confidence to India's maturing real estate ecosystem,' said Badal Yagnik, Chief Executive Officer, Colliers India. Foreign institutional investments dropped 39 per cent YoY in first half to $1.6 billion, as global investors remained cautious amidst evolving macroeconomic scenario, flow of credit and inflationary pressures. Despite the slowdown, foreign capital still accounted for over half of total inflows, with growing interest in mixed-use and retail assets. Both these segments together comprised about 55 per cent of foreign investments during first half (H1) of 2025. Residential assets saw $0.8 billion of investments, driving 27 per cent of the inflows during H1 2025, followed by office assets, at 24 per cent share. Investments in mixed-use assets too witnessed a significant surge, accounting for more than 20 per cent share in the total inflows during H1, up from 7 per cent share during the corresponding period in 2024. Retail and alternative assets too saw a notable rise in investment inflows, cumulatively accounting for $0.5 billion, led by select large deals in H1 2025. 'The $1.7 billion of investments recorded in Q2 2025 underscores the resilience of India's real estate sector, with both core and emerging segments attracting sustained interest. The residential segment continued its strong run, accounting for 31 per cent of quarterly investments, driven by healthy end-user demand, improved affordability, and renewed confidence from institutional investors. The retail sector is also witnessing a steady revival, backed by rising consumption, rapid urbanisation, and evolving consumer lifestyle and spending patterns. With REITs and other institutional players actively scouting for quality retail assets across key markets, investment activity in this segment is expected to gain further traction in the coming quarters,' said Vimal Nadar, National Director & Head of Research, Colliers India. Mumbai drove 22 per cent of the total investments during H1, led by select deals in office assets. Bengaluru attracted $0.5 billion investments during H1, contributing nearly 17 per cent to the total inflows. Office and residential assets together made up 57 per cent of the city's investment share. Interestingly, select large deal in retail segment in Kolkata, resulted in 13 per cent share in total investments by the city during first half. While reinvesting capital gains, is indexation benefit advantageous? Can we invest capital gains in commercial property? Parivesh Bohra, Sharjah. The capital gains are taxed either at 12.5 per cent without indexation or 20 per cent with indexation, whichever is more beneficial. In case of long-term appreciation, indexation often lowers tax liability, making the 20 per cent route preferable. It should be noted that if indexation does not significantly increase cost base, then 12.5 per cent flat rate would be ideal and tax-efficient. Investment in commercial property do not qualify. Is a loan available for NRIs to invest in land in India? Can we repatriate the sale proceeds if we sell the land at a later date? Please clarify. Haresh Bhatia, Dubai. Loans for investment in vacant plots are available for NRIs on similar interest rates offered to resident Indians. The loan amount depends on the value of the property from 75 per cent to 90 per cent. The maximum repayment period is 15 years. While computing the land value, the lender may take the guideline value of the property and not the market value. You can't sell land and repatriate the sale proceeds but you can build house on it and then sell and repatriate the sale proceeds including the value of the land.
India.com
04-07-2025
- Business
- India.com
This sector proved dangerous for China, but proving jackpot for India, sees Rs 119526130080 investment in just..., sector is...
This sector proved dangerous for China, but proving jackpot for India, sees Rs 119526130080 investment in just..., sector is... Real estate plays a big role in the country's economy. It is said that if the real estate sector of a country is growing, it means that country is growing. In the case of China, we all saw how the poor condition of real estate shook the entire economy of China. This sector of India is booming. Investments are increasing. Domestic capital inflows into the country's real estate market rose 53 per cent to $1.4 billion, accounting for 48 per cent of the total inflows in the January-June period, a report said on Thursday. After a steady start in the first quarter, institutional investment in Indian real estate witnessed a spectacular growth during the second quarter of 2025, rising 29 per cent sequentially to $1.7 billion. What was the total investment in the first half of 2025? This pushed total investments to $3.0 billion in the first half of 2025, strengthening the sector amid current global uncertainties. Investment volumes remained above the half-yearly average of around $2.6 billion from 2021, reflecting continued investor interest. The rising share of domestic investments reflects the ongoing change in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across key asset classes, the report said. Badal Yagnik, CEO, Colliers India, said domestic capital has emerged as a key driver in India's real estate investment, with its share in total investments growing from 16 per cent in 2021 to 34 per cent in 2024. Over 60 per cent of domestic investments during the first half of 2025 were directed towards residential and office assets, reflecting continued confidence in the key segments. . Yagnik said, domestic capital is becoming deeper and diversified, and is set to bring greater stability and long-term confidence to India's maturing real estate ecosystem. Residential assets saw $0.8 billion inflows, accounting for 27 per cent of inflows during the first half of 2025. This was followed by office assets, which accounted for 24 per cent. The report said mixed-use assets also saw strong growth in investments, accounting for over 20 per cent of total inflows during the first half of 2025, compared to 7 per cent during the same period in 2024. Retail and alternative assets also saw an increase in investment inflows, cumulatively amounting to $0.5 billion, including select large deals in the first half of 2025. Yagnik said, domestic capital is becoming deeper and diversified, and is set to bring greater stability and long-term confidence to India's maturing real estate ecosystem. Residential assets saw $0.8 billion inflows, accounting for 27 per cent of inflows during the first half of 2025. This was followed by office assets, which accounted for 24 per cent. The report said mixed-use assets also saw strong growth in investments, accounting for over 20 per cent of total inflows during the first half of 2025, compared to 7 per cent during the same period in 2024. Retail and alternative assets also saw an increase in investment inflows, cumulatively amounting to $0.5 billion, including select large deals in the first half of 2025.
Times of Oman
04-07-2025
- Business
- Times of Oman
Domestic investment up 53% in H1 2025; Institutional investment dropped 15%: Colliers
New Delhi: Despite a 15 per cent year-on-year decline, India's real estate sector attracted $3 billion in institutional investments in H1 2025, noted a recent report by Colliers. The report further mentions that the second quarter alone saw a robust USD 1.7 billion in inflows, up nearly 30 per cent from Q1, demonstrating resilience amid global economic headwinds. Notably, domestic investors played a crucial role, contributing USD 1.4 billion, a 53 per cent rise from H1 2024 and accounting for 48 per cent of the total inflows. This marks a sharp increase from just 16 per cent in 2021, reflecting an ongoing shift in the capital investment landscape, with Indian institutional investors playing a more prominent role in driving real estate activity across core asset classes. "As domestic capital deepens and diversifies, it is poised to bring greater stability and long-term confidence to India's maturing real estate ecosystem," said Badal Yagnik, Chief Executive Officer, Colliers India. While foreign investments fell 39 per cent YoY to USD 1.6 billion, they still made up 52 per cent of the total. Mixed-use and retail assets accounted for 55 per cent of these foreign inflows, indicating a shift in investor preference amid macroeconomic uncertainties. Among asset classes, residential real estate led with USD 0.8 billion, or 27 per cent of total investments in H1 2025, followed by office assets at 24 per cent. Mixed-use assets saw significant growth, jumping from 7 per cent in H1 2024 to over 20 per cent in H1 2025. Geographically, Mumbai and Bengaluru dominated, contributing 22 per cent and 17 per cent of H1 investments, respectively. Mumbai's performance was driven by office deals, while Bengaluru saw balanced investment across the office and residential sectors. A large retail transaction in Kolkata propelled the city to a 13 per cent share of H1 inflows. "The retail sector is also witnessing a steady revival, backed by rising consumption, rapid urbanisation, and evolving consumer lifestyle & spending patterns. With REITs and other institutional players actively scouting for quality retail assets across key markets, investment activity in this segment is expected to gain further traction in the coming quarters," said Vimal Nadar, National Director & Head of Research, Colliers India.
Time of India
03-07-2025
- Business
- Time of India
Domestic investments in Indian real estate surge 53% to $1.4 billion in H1 2025
NEW DELHI: India's real estate sector attracted USD 3 billion in institutional investments in the first half of 2025, with domestic investors contributing nearly half (48%) of the total inflow, according to the latest data from Colliers. While overall inflows declined 15% year-on-year, the sharp 53% rise in domestic capital to USD 1.4 billion provided a critical buffer amid a slowdown in foreign investments. Domestic capital, long playing a secondary role, has stepped up significantly, growing from just 16% of total investments in 2021 to nearly half in H1 2025. Foreign investments, in contrast, declined 39% year-on-year to USD 1.6 billion, impacted by global credit tightening and macroeconomic uncertainty. The sector witnessed a strong recovery in Q2 2025, with investments rising 29% over Q1 to USD 1.7 billion, indicating renewed investor confidence across residential, office, and retail assets. Residential real estate led the inflows during the half-year with USD 819.9 million—a 27% year-on-year growth—followed by the office segment with USD 702.8 million, though the latter saw a 22% decline compared to H1 2024. 'The growing influence of domestic capital has helped cushion the impact of global headwinds,' said Badal Yagnik , CEO of the company. 'Over 60% of domestic investments in H1 2025 went into residential and office segments, reflecting sustained faith in India's core real estate sectors.' Mumbai and Bengaluru collectively accounted for 39% of the total investment inflows. Mumbai led with 22% share, clocking USD 656.3 million, a massive 408% jump from the same period last year. Bengaluru followed with USD 498.8 million, a 15% increase, with both residential and office segments comprising 57% of the city's share. An unexpected highlight came from Kolkata, which captured 13% of total inflows on the back of a significant retail transaction worth USD 380 million. Meanwhile, the mixed-use asset class saw inflows surge 148% to USD 628.5 million, indicating rising appetite for integrated developments. Retail and alternate assets also gained traction, collectively accounting for USD 0.5 billion, led by marquee deals in emerging consumption hubs. City wise investment inflows in Q2 2025 and H1 2025 (in USD million): CityQ2 2024Q2 2025Investment share in Q2 2025 (%)Q2 2025 vs Q2 2024(% YoY Change)H1 2024H1 2025Investment share in H1 2025 (%)H1 2025 vs H1 2024 (%YoY change)Bengaluru228.8242.314%6%432.0498.817%15%Chennai33.0-0%-100%154.148.31%-69%Delhi NCR308.7108.96%-65%337.9180.46%-47%Hyderabad43.021.01%-51%300.9256.28%-15%Kolkata-380.023%*NA-380.013%*NAMumbai98.4367.222%273%129.1656.322%408%Pune4.317.31%299%258.317.31%-93%Others/ Multi City1,817.1554.533%-69%1,916.2960.832%-50%Total2,533.31,691.2100%-33%3,528.52,998.1100%-15% 'Despite a year-on-year dip in foreign capital, the resilience shown by India's real estate market in Q2 2025 is encouraging,' said Vimal Nadar, head of research of the company. 'Strong domestic consumption, improved affordability, and robust end-user demand are driving momentum in residential and retail segments. We also expect REITs and institutional investors to continue scouting for quality assets, particularly in retail and mixed-use spaces.' While office space investments fell compared to last year, demand remains steady, with corporate occupiers and GCCs continuing to evaluate long-term bets in India. Average deal sizes in H1 2025 also indicated increasing interest in portfolio-level investments. The report underscores that India's maturing real estate ecosystem is becoming more self-reliant, with domestic institutions emerging as stabilizing forces amid evolving global investment patterns.
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Business Standard
03-07-2025
- Business
- Business Standard
Institutional investments in real estate decline 33% in Q2 CY25: Report
Institutional investments in Indian real estate declined 33 per cent to $1.7 billion in the second quarter of calendar year 2025 (Q2 CY25) as global investors remained cautious, according to a report by Colliers. Domestic institutions stepped up as their investments rose 32 per cent year-on-year (Y-o-Y) to $642.8 million. Foreign institutional investments declined 49 per cent to $1.04 billion but their share in total inflows was 62 per cent. Investors were cautious amid an evolving macroeconomic scenario, credit flow and inflationary pressures, said the report. Institutional investments in the first half of 2025 stood at $3 billion, down 15 per cent Y-o-Y. As foreign investments declined 39 per cent, domestic capital surged 53 per cent to $1.4 billion to comprise 48 per cent of total inflows in H1 CY25. 'The growing dominance of domestic investments has helped cushion the impact of global uncertainties and push total investments to the $3 billion mark,' said Badal Yagnik, chief executive officer of Colliers India. 'Over 60 per cent of domestic investments during H1 CY25 were directed towards residential and office assets, reflecting sustained confidence in core segments. As domestic capital deepens and diversifies, it is poised to bring greater stability and long-term confidence to India's maturing real estate ecosystem,' he said. Foreign capital slowed down but accounted for over half of total inflows, with growing interest in mixed-use and retail assets. The two segments together comprised about 55 per cent of foreign investments in H1 CY25. Residential assets saw $0.8 billion investments, driving 27 per cent of the inflows during H1 CY25. Office assets followed, at a 24 per cent share. Investments in mixed-use assets also witnessed a surge, accounting for more than 20 per cent share of the total inflows during H1 CY25, up from 7 per cent share during H1 CY24. Retail and alternative assets, too, saw a rise in investment inflows, cumulatively accounting for $0.5 billion, led by select large deals in H1 CY25, said the report.
