India's Real Estate Sector Witnesses Record $10.4 Billion Institutional Investments in 2025
Institutional investments in India’s real estate sector reached a new high of $10.4 billion in 2025, spanning 77 transactions. This marks the second consecutive year of record-breaking performance, with a 17% rise from the $8.9 billion recorded in 2024, according to property consultant JLL.
Beyond immediate transactions, 2025 also saw significant platform commitments totaling $11.43 billion, designed for gradual deployment over the next 3-7 years. The majority of this commitment—$11 billion—stems from a single platform deal established by Digital Connexion, a strategic joint venture comprising Reliance Industries, Brookfield Asset Management, and Digital Realty Trust Inc., focusing on data centers.
The office sector has reasserted its dominance in institutional investments, capturing a 58% market share in 2025. This represents a significant recovery from 2024, when the residential sector led with a 45% share, followed by the office sector at 28%.
JLL noted that as the market matures, investment horizons are expanding beyond traditional sectors. Emerging asset classes, including data centers, student housing, life sciences, and healthcare, are gaining traction. These sectors are seen as promising areas for future growth and diversification.
Bengaluru has emerged as the dominant investment destination, capturing 29% of total institutional deployment in 2025. Mumbai-MMR, the financial capital, maintains a strong institutional appeal, driven by the concentration of corporate headquarters and premium commercial assets. Notably, Tier 2 cities received $175 million in deployment, representing 2% of total investments. While modest, this signals institutional willingness to explore emerging markets for value-add opportunities and portfolio diversification.
“2025 marked a pivotal transformation in India's real estate investment landscape, with office properties reclaiming their position as the institutional capital magnet, attracting USD 6 billion through strategic investments that more than doubled from the previous year,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Das added that they also observed a strategic recalibration in the residential sector, where international confidence was reinforced by a major global investor's strategic partnership with a leading domestic developer. This partnership signals a maturation toward equity-centric investment approaches across both sectors.
The Indian real estate sector's robust performance in 2025 reflects a growing confidence among institutional investors in the country's economic prospects and the potential for high returns in various asset classes. As the market continues to evolve, the focus on emerging sectors and regional diversification is expected to drive further growth and innovation in the coming years.
