Institutional Investments in Indian Real Estate to Surpass $10 Billion in 2025: JLL
NEW DELHI: Institutional investments in India’s real estate sector are estimated to cross the $10 billion mark for the first time in 2025, reaching about $10.4 billion across 77 transactions, according to a report by JLL. This represents a 17% year-on-year increase over the $8.9 billion recorded in 2024, marking the second consecutive year of record investment inflows.
In addition to closed transactions, the sector also witnessed platform commitments of around $11.4 billion in 2025, earmarked for deployment over the next three to seven years, largely towards commercial assets, data centres, and residential development.
A key structural shift in 2025 was the rise of domestic institutional capital, which accounted for 52% of total real estate investments. This is the first time since 2014 that domestic investors have led the market. Indian REITs and Infrastructure Investment Trusts (InvITs) emerged as major drivers, deploying about $2.5 billion and accounting for over half of core asset acquisitions. Indian private equity players contributed nearly 30% of domestic capital deployment.
While foreign investors’ share declined in relative terms, absolute foreign capital inflows rose 18% year-on-year. Investors from the Americas increased their investments sharply, from $1.6 billion in 2024 to $2.6 billion in 2025.
Equity investments dominated institutional activity, accounting for 83% of total capital deployed during the year.
The office sector reclaimed its position as the largest recipient of institutional capital, accounting for 58% of total investments in 2025, compared with 28% in the previous year. This was a reversal from 2024, when residential assets had led institutional investment flows. A large share of office investments was concentrated in core assets with stable cash flows.
Bengaluru emerged as the top investment destination, attracting 29% of total institutional capital deployed during the year, followed by the Mumbai Metropolitan Region. Tier II cities accounted for about $175 million, or 2% of total investments, indicating early institutional interest beyond the top markets.
Investor interest is also expanding into emerging asset classes such as data centres, student housing, life sciences, and healthcare. The largest platform commitment during the year was a data centre joint venture involving Reliance Industries, Brookfield Asset Management, and Digital Realty Trust, with commitments exceeding $11 billion.
According to JLL, the trend is expected to continue into 2026, supported by economic resilience, expanding REIT participation, and deeper institutional engagement across asset classes.
