Kolkata Tops Institutional Real Estate Investment Growth in India in 2025
Kolkata has emerged as the fastest-growing city in India for institutional real estate investments in 2025, recording an exceptional over 400% year-on-year growth, the highest among all major Indian cities. This sharp rise marks a significant turning point for the city’s real estate ecosystem and signals renewed confidence among large institutional investors in Bengal’s growth story.
According to a recent study by Colliers India, Kolkata attracted nearly $0.4 billion (approximately ₹3,500 crore) in institutional real estate investments in 2025, compared to ₹650 crore in 2024. The surge was primarily driven by a marquee transaction, the South City Mall deal involving global investment major Blackstone through a consortium, which played a decisive role in boosting annual inflows.
A Colliers India spokesperson noted that Kolkata’s performance was largely powered by large retail asset transactions, underscoring growing investor preference for stabilized, income-generating retail properties in the city. The South City transaction not only elevated Kolkata’s annual investment figures but also positioned the city as a serious contender in India’s institutional real estate landscape.
Kolkata Outpaces Other Major Cities
In terms of growth rate, Kolkata outperformed other major metros by a wide margin. Bengaluru followed with 277% growth, while Hyderabad recorded 44% growth in institutional real estate investments during the same period. Kolkata’s leadership in percentage growth highlights a structural shift in investor sentiment towards eastern India.
India Sees Record Institutional Inflows in 2025
The Colliers report further revealed that institutional investments in Indian real estate reached an all-time high of $8.5 billion in 2025, reflecting a 29% year-on-year increase. A key highlight of the year was the strong rise in domestic institutional capital.
Domestic investors accounted for $4.8 billion, more than doubling their investments compared to the previous year and contributing 57% of the total inflows. This surge reflects rising confidence among Indian institutions, supported by improving asset quality, stable returns, and greater transparency in the real estate sector.
While foreign investments moderated by 16% year-on-year to $3.7 billion, cross-border capital showed signs of recovery in the final quarter of 2025, indicating improving global investor sentiment.
Record-Breaking Fourth Quarter
Badal Yagnik, Chief Executive Officer and Managing Director of Colliers India, stated that private equity investments in Indian real estate touched a new high in 2025, aided by record capital deployment in the last quarter of the year.
“Q4 alone witnessed investments of $4.2 billion, the highest ever in any quarter,” he said. Office assets continued to dominate investor interest, accounting for 54% of annual inflows, followed by residential, industrial, and warehousing segments.
Bengal’s Real Estate Ecosystem Gains Momentum
Industry leaders believe that Kolkata’s recent success is just the beginning. Saket Mohta, Managing Director of Merlin Group, said that 2026 is expected to witness new momentum, with private equity and REITs playing a much larger role in India’s real estate growth story.
Siddharth Pansari, former President of Credai Bengal and Director of Primarc Group, highlighted growing institutional interest in Bengal. He pointed out that South City is only one example, adding that discussions are already underway for other large assets, including shopping malls and major IT complexes, to be taken over by institutional funds.
“This is just the start. The ecosystem is bound to grow in Bengal,” Pansari said.
A New Chapter for Kolkata
With strong fundamentals, improving asset quality, and increasing institutional participation, Kolkata’s real estate market is entering a new phase of growth and maturity. The city’s rise in 2025 reflects not just a single deal but a broader shift in perception, from being underrepresented to emerging as a promising institutional investment destination.
As domestic and global investors continue to explore opportunities beyond traditional markets, Kolkata is firmly positioning itself as a key growth engine in India’s real estate future.