Indian Real Estate Sees 37% Drop in Institutional Investments to $3.06 Billion in H1 2025
Institutional investments in Indian real estate are expected to decline by 37% in the first half of 2025, falling to $3.06 billion due to global economic uncertainties, according to JLL.
Indian Real EstateInstitutional InvestmentsJll IndiaReitsForeign InvestorsReal EstateJun 24, 2025
Foreign investors contribute the majority of these investments, accounting for 68% of the total, while domestic players infused 32% during the first half of 2025. The challenging international economic conditions and political uncertainties have led to 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, stated, '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 USD 1 billion points to sustained activity ahead. Pillai added, 'The real estate market has consistently demonstrated its staying power with annual investments surpassing the USD 5 billion threshold across the previous five years, and we anticipate that capital flows for calendar year 2025 will align with these established benchmarks.'
The housing segment received the largest share of the total institutional investments, accounting for 38%. This indicates a continued interest in the residential real estate market, which is a critical component of the Indian economy.
Frequently Asked Questions
What is the expected decline in institutional investments in Indian real estate for H1 2025?
Institutional investments in Indian real estate are expected to decline by 37% to USD 3.06 billion in the first half of 2025, according to JLL.
Who are the major contributors to institutional investments in Indian real estate?
Foreign investors contribute 68% of the total institutional investments, while domestic players account for 32%.
What are the key public market channels used by institutional investors in Indian real estate?
Institutional investors continue to participate through Real Estate Investment Trusts (REITs), Qualified Institutional Placement (QIPs), and investments in listed entities.
What is the outlook for the Indian real estate market in 2025?
Despite global economic uncertainties, the real estate market is expected to maintain its strong performance, with annual investments likely to surpass the USD 5 billion threshold.
Which segment of the real estate market received the largest share of institutional investments?
The housing segment received the largest share, accounting for 38% of the total institutional investments.
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