NEW DELHI: Institutional investments in India’s real estate market are projected to surpass $10 billion for the first time in 2025, reaching approximately $10.4 billion through 77 transactions, according to JLL’s report. This marks a 17% year-on-year increase from the $8.9 billion noted in 2024, marking the second successive year of record investment inflows.
This achievement highlights ongoing institutional interest in Indian real estate, fueled by enhanced market transparency, stable asset performance, and a wider investor base. Beyond completed transactions, the sector also experienced platform commitments of about $11.4 billion in 2025, intended for deployment over the next three to seven years, primarily directed towards commercial properties, data centers, and residential projects.
A significant structural change in 2025 was the rise in domestic institutional capital, which represented 52% of total real estate investments—the first time since 2014 that domestic investors have taken the lead. Indian REITs and Infrastructure Investment Trusts (InvITs) played pivotal roles, contributing approximately $2.5 billion and accounting for over half of core asset purchases. Private equity firms in India comprised nearly 30% of domestic capital deployment.
Although the relative share of foreign investors declined, absolute foreign capital inflows increased by 18% year-on-year, showing continued confidence in the fundamentals of Indian real estate. Investments from the Americas surged from $1.6 billion in 2024 to $2.6 billion in 2025.
Equity investments made up the bulk of institutional activity, constituting 83% of the total capital deployed during the year, indicating a preference for long-term ownership of income-generating assets over leveraged structures.
The office sector regained its status as the largest recipient of institutional capital, accounting for 58% of total investments in 2025, a rise from only 28% in the previous year. This shift contrasts with 2024, where residential properties attracted the largest institutional investments. A substantial portion of office investments focused on core assets with consistent cash flows.
Bengaluru emerged as the prime investment hotspot, attracting 29% of total institutional capital, followed by the Mumbai Metropolitan Region. Tier II cities received roughly $175 million, or 2% of total investments, reflecting an early interest from institutional investors beyond the leading markets.
Interest from investors is also broadening into emerging asset classes such as data centers, student housing, life sciences, and healthcare. The largest platform commitment in the year was a joint venture for a data center between Reliance Industries, Brookfield Asset Management, and Digital Realty Trust, surpassing $11 billion.
According to JLL, the rising influence of domestic institutional capital, alongside continued foreign participation, signals a maturing real estate investment ecosystem. This trend is expected to persist into 2026, buoyed by economic stability, increased REIT participation, and deeper institutional involvement across various asset classes.
