December 23, 2025: Institutional investments in Indian real estate are expected to reach a historic high of USD 10.4 billion in 2025, spread across 77 transactions, marking the second straight year of record-breaking inflows, according to a report by real estate consultancy JLL. This projected figure reflects a 17% rise over the previous year’s strong performance of USD 8.9 billion, underlining sustained investor confidence in the sector.
Beyond completed deals, the report highlights sizeable long-term commitments. Platform investments worth $11.43 billion were recorded in 2025, with capital earmarked for phased deployment over the next three to seven years. These commitments indicate a strategic shift towards long-term participation rather than short-term gains. As Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL, noted, “For the first time since 2014, domestic institutional investors have captured a commanding 52% market share. Also, the two-fold increase in core asset acquisitions in 2025 demonstrates that investors are not just betting on India’s growth story, but are actively building long-term wealth through our stabilised, income-generating properties.”
Domestic capital has been led by Indian REITs and Infrastructure Investment Trusts (InvITs), which together deployed USD 2.5 billion, accounting for 56% of core asset acquisitions. Indian private equity funds also played a significant role, contributing 30 per cent of overall domestic investments.
While foreign institutional investors saw a relative decline in market share, absolute foreign capital inflows rose by 18% year-on-year. Investors from the Americas were particularly active, increasing their exposure from USD 1.6 billion in 2024 to USD 2.6 billion in 2025, a growth of 63%.
Sectorally, office assets reclaimed dominance, attracting 58% of institutional investments, a sharp turnaround from 2024 when residential assets led. Geographically, Bengaluru emerged as the most preferred destination, drawing 29% of total investments, while Tier 2 cities accounted for USD 175 million, or 2% of the total. Summing up the shift, Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, said, “2025 marked a pivotal transformation in India’s real estate investment landscape, with office properties reclaiming their position as the institutional capital magnet, attracting $6 billion through strategic investments that more than doubled from the previous year.”
Source: Lokmat Times
