Global Uncertainties Lead to 37% Decline in Indian Real Estate Investments
Institutional investments in Indian real estate are projected to decline by 37% to USD 3.06 billion in H1 2025 due to global economic uncertainties and prolonged investment timelines.
Real EstateInvestmentsGlobal UncertaintiesJllIndiaReal EstateJun 23, 2025
Data from real estate consultant JLL India indicates a significant drop from the USD 4.89 billion invested in the same period last year. This decline is attributed to prolonged investment timelines driven by international economic and political challenges.
Foreign investors dominated with a 68% share, while domestic investments accounted for 32%. Despite these hurdles, India's real estate market remains a strong investment opportunity, with continued interest from public market channels and a robust pipeline of future deals.
The real estate sector in India has been resilient, supported by a growing population and urbanization. However, global uncertainties have led to cautious investment strategies, particularly from foreign investors who are more sensitive to economic and political risks.
JLL’s report also highlights that while the overall investment climate is challenging, there are still bright spots. For instance, the residential and retail sectors are showing resilience, driven by strong domestic demand and a recovering economy. The industrial and logistics segments are also performing well, benefiting from the government's push towards manufacturing and e-commerce.
Despite the current challenges, experts believe that the Indian real estate market will recover as global economic conditions stabilize. The government's initiatives to improve infrastructure and ease of doing business are expected to further boost investor confidence.
Investors are advised to remain vigilant and focus on sectors that are less affected by global uncertainties. Diversification and a long-term investment approach are key to navigating the current market conditions and capitalizing on future opportunities.
Frequently Asked Questions
What is the projected decline in institutional investments in Indian real estate for H1 2025?
Institutional investments in Indian real estate are projected to decline by 37% to USD 3.06 billion in H1 2025.
What factors are contributing to the decline in investments?
The decline is attributed to prolonged investment timelines driven by international economic and political challenges.
What is the share of foreign investors in the Indian real estate market?
Foreign investors dominate with a 68% share, while domestic investments account for 32%.
Which sectors in the Indian real estate market are showing resilience?
The residential and retail sectors are showing resilience, driven by strong domestic demand and a recovering economy. The industrial and logistics segments are also performing well.
What are the government's initiatives to boost the real estate market?
The government's initiatives to improve infrastructure and ease of doing business are expected to further boost investor confidence.
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