Indian Real Estate Saw Highest Ever Institutional Investments, Estimates $10 Billion In 2025: Report

Institutional investments in India’s retail sector are projected to surge to an estimated $10.4 billion across 77 transactions in 2025, marking the second consecutive year of record-breaking performance, a report released on Monday said.

According to a report by real estate consultancy JLL, the projected figure represents a 17 per cent increase over the previous year’s strong showing of $8.9 billion, making it the highest level of institutional investment recorded in the sector.

Beyond direct transactions, 2025 also witnessed substantial platform commitments amounting to $11.43 billion, which are intended to be deployed gradually over the next three to seven years.

“For the first time since 2014, domestic institutional investors have captured a commanding 52 per cent 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,” said Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL.

Private Equity Players Contribute 30 Per Cent

Indian Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have emerged as key drivers of this shift, deploying $2.5 billion, which accounted for 56 per cent of core asset acquisitions during the year. Indian private equity players also played a significant role, contributing 30 per cent of total domestic capital deployment.

While foreign institutional investment declined as a share of overall activity, the absolute value of foreign capital deployment rose by 18 per cent year-on-year, indicating sustained confidence in India’s real estate fundamentals. Investors from the Americas showed particularly strong interest, increasing their investments from $1.6 billion in 2024 to $2.6 billion in 2025, a growth of 63 per cent.

The office sector regained its position as the dominant segment for institutional investments, accounting for 58 per cent of total deployment in 2025. This marked a sharp recovery from 2024, when the residential sector led with a 45 per cent share, followed by office assets at 28 per cent.

Geographically, Bengaluru emerged as the leading investment destination, capturing 29 per cent of total institutional investment in 2025. Tier 2 cities attracted $175 million in investments, representing 2 per cent of the total.

“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,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

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