Mumbai, the financial capital of India, is witnessing a remarkable transformation in its real estate landscape as local institutional participation rises to 48%. According to the latest report by Cushman and Wakefield, India's real estate sector attracted $4.7 billion in institutional investments during the first three quarters of 2025. Although this marks a 10% decrease compared to the previous year, forecasts suggest that the sector will close the year with total inflows between $6 billion and $6.5 billion, making it the second-highest annual inflow on record.
What was once perceived as a cyclical market is swiftly evolving into a stable and credible investment avenue. Domestic and institutional investors are increasingly viewing Indian real estate as not just a growth opportunity, but also as a structured ecosystem that benefits from policy transparency and consistent demand. The growing maturity of the property market indicates a crucial shift where capital is now guided by performance, governance, and long-term yield potential rather than short-term speculation.
The report highlights that the domestic institutional participation has significantly increased, accounting for 48% of inflows from January to September 2025. This change is a substantial rise from previous years, where foreign investors contributed the remaining 52%. This trend not only stabilizes the market but also showcases the resilience of the Indian real estate sector amidst global uncertainties. Notably, office assets have emerged as the leading choice for investments, making up 35% of inflows, while residential, retail, and logistics segments follow with 26%, 12%, and 9% respectively.
Industry experts, including Pankaj Jain, Founder & CMD of SPJ Group, emphasize that institutional investors are accurately gauging India's consumption economy. The maturity of retail real estate into a stable long-yield asset class reflects the evolving investment landscape in India. As the market continues to attract significant institutional investments, it is poised for sustained growth and stability in the coming years.
In conclusion, as Mumbai and other major cities in India experience this surge in local institutional participation, it is clear that the real estate sector is set for a promising future. With a solid foundation built on transparency and performance, investors can expect more stable returns, making Indian real estate a compelling choice for both domestic and international stakeholders.
