India's Real Estate Sector Hits New Highs with $10.4 Billion in Institutional Investments
India's real estate sector has achieved a record $10.4 billion in institutional investments in 2025, driven by strong domestic capital and foreign interest. The surge highlights the sector's resilience and growing appeal to both local and international investors.
Real EstateInstitutional InvestmentsReitsOffice SectorIndiaReal EstateDec 22, 2025
Real Estate:Mumbai: India's real estate sector is witnessing record momentum, driven by evolving market dynamics and strong institutional investor confidence. This is reflected in heightened deal activity and all-time high capital deployment in 2025. The surge underscores the country's rising prominence on the global investment map.
The property sector attracted a record $10.4 billion (₹93,200 crore) in institutional investments this calendar year, surpassing the previous peak of $8.4 billion in 2024, according to data from property consultancy JLL India. The sustained strong investor momentum also highlights the sector's resilience and its growing appeal to both local and international investors.
Robust economic growth, coupled with strategic policy and infrastructure initiatives, is positioning India as a compelling destination for global captive centres, said Srini Sriniwasan, MD, Kotak Alternate Asset Managers. REIT policy enabling liquidity and strong domestic capital participation in REITs have assured investors of attractive exits. This makes for a robust investment and exit environment, giving confidence to investors.
Domestic institutional capital played a key role this year. For the first time since 2014, domestic investors captured a commanding 52% market share. This milestone reflects a fundamental transformation in the capital markets ecosystem, said Lata Pillai, senior MD and head of capital markets, India, JLL. For the first time since 2014, domestic institutional investors captured 52% market share. A twofold rise in core asset acquisitions shows investors are not just betting on India's growth story, but building long-term wealth through stabilised, income-generating properties.
The convergence of domestic institutional strength and sustained foreign confidence is creating an unprecedented foundation for continued market expansion. Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) led the domestic charge, deploying $2.5 billion, representing 56% of core asset acquisitions. Indian private equity firms contributed 30% of total domestic capital deployment, reflecting growing confidence in the country's commercial and income-generating real estate assets.
While foreign investment fell as a share of total activity, absolute deployment grew 18% from 2024. Americas-based investors enhanced their allocation by $1 billion to $2.6 billion this year, highlighting continued interest in prime assets. Equity investments dominated the market, accounting for 83% of total institutional deployment, underscoring a long-term, conservative investment approach.
The office sector reclaimed dominance, capturing 58% of institutional investments, up from 28% in 2024, while residential-led activity moderated. 2025 marked a pivotal transformation in India's real estate investment landscape, with office properties attracting $6 billion through strategic investments, more than doubling from the previous year, said Samantak Das, chief economist and head of research and REIS, India, JLL. Two-thirds of these investments were concentrated in prime core assets, demonstrating investor preference for stabilized, income-generating properties.
Platform commitments over the next three-seven years totalled $11.43 billion, of which $11 billion came from Digital Connexion, a joint venture of Reliance Industries, Brookfield Asset Management, and Digital Realty for data centres. The rest is earmarked for upcoming commercial and residential projects. Emerging asset classes such as data centres, student housing, life sciences, and healthcare gained traction, reflecting diversification strategies. Geographically, Bengaluru led with 29% of total deployment, followed by Mumbai-MMR, while tier-2 cities received $175 million, signalling early institutional interest in secondary markets.
The property sector attracted a record $10.4 billion (₹93,200 crore) in institutional investments this calendar year, surpassing the previous peak of $8.4 billion in 2024, according to data from property consultancy JLL India. The sustained strong investor momentum also highlights the sector's resilience and its growing appeal to both local and international investors.
Robust economic growth, coupled with strategic policy and infrastructure initiatives, is positioning India as a compelling destination for global captive centres, said Srini Sriniwasan, MD, Kotak Alternate Asset Managers. REIT policy enabling liquidity and strong domestic capital participation in REITs have assured investors of attractive exits. This makes for a robust investment and exit environment, giving confidence to investors.
Domestic institutional capital played a key role this year. For the first time since 2014, domestic investors captured a commanding 52% market share. This milestone reflects a fundamental transformation in the capital markets ecosystem, said Lata Pillai, senior MD and head of capital markets, India, JLL. For the first time since 2014, domestic institutional investors captured 52% market share. A twofold rise in core asset acquisitions shows investors are not just betting on India's growth story, but building long-term wealth through stabilised, income-generating properties.
The convergence of domestic institutional strength and sustained foreign confidence is creating an unprecedented foundation for continued market expansion. Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) led the domestic charge, deploying $2.5 billion, representing 56% of core asset acquisitions. Indian private equity firms contributed 30% of total domestic capital deployment, reflecting growing confidence in the country's commercial and income-generating real estate assets.
While foreign investment fell as a share of total activity, absolute deployment grew 18% from 2024. Americas-based investors enhanced their allocation by $1 billion to $2.6 billion this year, highlighting continued interest in prime assets. Equity investments dominated the market, accounting for 83% of total institutional deployment, underscoring a long-term, conservative investment approach.
The office sector reclaimed dominance, capturing 58% of institutional investments, up from 28% in 2024, while residential-led activity moderated. 2025 marked a pivotal transformation in India's real estate investment landscape, with office properties attracting $6 billion through strategic investments, more than doubling from the previous year, said Samantak Das, chief economist and head of research and REIS, India, JLL. Two-thirds of these investments were concentrated in prime core assets, demonstrating investor preference for stabilized, income-generating properties.
Platform commitments over the next three-seven years totalled $11.43 billion, of which $11 billion came from Digital Connexion, a joint venture of Reliance Industries, Brookfield Asset Management, and Digital Realty for data centres. The rest is earmarked for upcoming commercial and residential projects. Emerging asset classes such as data centres, student housing, life sciences, and healthcare gained traction, reflecting diversification strategies. Geographically, Bengaluru led with 29% of total deployment, followed by Mumbai-MMR, while tier-2 cities received $175 million, signalling early institutional interest in secondary markets.
Frequently Asked Questions
What is the record amount of institutional investments in India's real estate sector in 2025?
The record amount of institutional investments in India's real estate sector in 2025 was $10.4 billion (₹93,200 crore).
What percentage of the total investment was captured by domestic investors in 2025?
Domestic investors captured a commanding 52% market share of the total investment in 2025.
Which asset class saw the most significant increase in investment in 2025?
The office sector saw the most significant increase in investment in 2025, capturing 58% of institutional investments.
How much did REITs and InvITs contribute to the domestic capital deployment?
REITs and InvITs contributed $2.5 billion, representing 56% of core asset acquisitions.
What is the significance of the Digital Connexion joint venture?
The Digital Connexion joint venture, a collaboration between Reliance Industries, Brookfield Asset Management, and Digital Realty, committed $11 billion for data centres, reflecting a significant investment in emerging asset classes.
