New Delhi: India’s commercial real estate market is gaining renewed momentum, with investors showing a marked preference for income-generating properties, particularly in the thriving Delhi-NCR region. Fresh data from the first half of 2025 (H1) points to a strong resurgence, as institutional investment touched USD 3.0 billion, backed by robust domestic participation and growing interest in the region’s core office and retail assets.
A report by Colliers India highlighted that, for the first time, over half of these investments came from domestic sources. Indian capital accounted for USD 1.4 billion, representing a 53 per cent year-on-year increase, even as foreign investment volumes saw a decline of 39 per cent. The second quarter alone registered inflows of USD 1.7 billion, marking a 29 per cent jump over the previous quarter. This surge was most visible in Delhi-NCR, where areas such as Gurugram, Noida-Greater Noida, and Faridabad drew heightened investor attention.
Retail real-estate makes strong comeback in Delhi NCR
Retail real estate, in particular, has made a strong comeback in Delhi-NCR. In Q2 2025, the segment attracted USD 380 million, pushing retail’s share of total real estate investment to 13 per cent, a sharp recovery from near-zero contributions just a year ago.
“The strong capital inflow into India’s Grade A commercial assets reflects a deeper, structural shift in investor outlook, favouring long-term value, stable yields, and resilient asset classes,” said Mohit Goel, Managing Director, Omaxe Group. “In NCR, cities like Faridabad are emerging as a cost-effective alternative, offering more competitive rentals, ample land availability, and Grade A large-format offices and retail spaces.”
Faridabad & Gurugram reshaping as dynamic commercial hubs
Once viewed predominantly as a residential zone, Faridabad is now being reimagined as a dynamic commercial hub, with developers capitalising on its strategic location, affordability, and seamless connectivity via major expressways.
Gurugram too continues to capture investor interest, especially in the retail domain. Pankaj Jain, Founder and CMD of SPJ Group, observed: “The Indian commercial segment has been clocking high growth, with the retail sector seeing a strong revival… Untapped yet high-potential markets of Gurugram are seeing demand from homegrown and international brands seeking well-located, high-footfall zones.”
The broader real estate landscape reflects this momentum. Residential real estate garnered USD 0.8 billion in H1 2025, accounting for the largest investment share at 27 per cent, while office spaces followed at 24 per cent. A notable trend has been the rise in mixed-use developments, whose share of total investments jumped from 7 per cent in H1 2024 to over 20 per cent this year. Many of these projects, offering an integrated mix of workspaces, retail outlets, and leisure zones, are concentrated in Delhi-NCR.
Strategic hotspots powering the trend: Expert
“In NCR, high-potential corridors like the Noida–Greater Noida Expressway have emerged as a strategic hotspot powering this trend,” said Sanchit Bhutani, Managing Director, Group 108. “On the office front, demand for Grade A spaces is rising sharply. The retail segment here is fueled by increasing brand appetite for well-planned, high-visibility locations.”
The ongoing expansion of Real Estate Investment Trusts (REITs) and domestic real estate funds has added further depth to the sector. Despite a 15 per cent year-on-year dip in overall investment volumes due to global economic uncertainties, confidence in India’s commercial property market remains firmly intact—particularly in the capital region.
“This period underscores a growing confidence in domestic institutional capital,” said Harinder Singh Hora, Founder Chairman, Reach Group. “Within this evolving scenario, Grade A retail assets across India have unequivocally witnessed strong capital inflow and sustained interest.”