Indian Real Estate Sees 37% Drop in Institutional Investments to $3 Billion in H1 2025
Institutional investments in Indian real estate are estimated to decline by 37% to $3.06 billion in the first half of 2025, primarily due to global economic uncertainties, according to JLL.
Real EstateInstitutional InvestmentsJllGlobal EconomyIndiaReal Estate NewsJun 23, 2025
Foreign investors account for 68% of total institutional investments in Indian real estate, while domestic players contribute 32% during the first half of 2025. The challenging international economic conditions and political uncertainties are causing extended timelines for investment transactions, according to JLL.
Despite these challenges, institutional investors continue to participate through public market channels, including Real Estate Investment Trusts (REITs), Qualified Institutional Placement (QIPs), and investments in listed entities. Lata Pillai, Senior Managing Director, and Head of Capital Markets, India, JLL, commented, “India's real estate sector remains a compelling investment destination, buoyed by both domestic and international confidence despite global economic uncertainties having presented short-term challenges in the first half of 2025.”
A robust pipeline of deals exceeding $1 billion points to sustained activity ahead. Pillai added, “The real estate market has consistently demonstrated its staying power with annual investments surpassing the $5 billion threshold across the previous five years, and we anticipate that capital flows for the calendar year 2025 will align with these established benchmarks.”
The housing segment received the largest share of total institutional investments, accounting for 38% of the total. This segment continues to attract significant interest from both domestic and foreign investors, driven by the growing urban population and increasing demand for residential properties.
Overall, while the first half of 2025 has seen a decline in institutional investments, the real estate sector in India remains resilient and is expected to recover and maintain its growth trajectory in the coming months.
Frequently Asked Questions
What is the estimated decline in institutional investments in Indian real estate in H1 2025?
Institutional investments in Indian real estate are estimated to decline by 37% to $3.06 billion in the first half of 2025.
What percentage of institutional investments in Indian real estate comes from foreign investors?
Foreign investors account for 68% of total institutional investments in Indian real estate during the first half of 2025.
What are the public market channels through which institutional investors continue to participate?
Institutional investors continue to participate through Real Estate Investment Trusts (REITs), Qualified Institutional Placement (QIPs), and investments in listed entities.
What segment of the real estate market received the largest share of institutional investments?
The housing segment received the largest share of institutional investments, accounting for 38% of the total.
What is the outlook for the Indian real estate market in 2025?
Despite the short-term challenges, the real estate market in India is expected to recover and maintain its growth trajectory, with capital flows aligning with the established benchmarks of surpassing $5 billion annually.
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