Institutional Investors Invest $3.1 Billion in Indian Real Estate in H1 2025
Mumbai: Institutional investments in the Indian real estate market reached $3,068 million ($3.1 billion) across 30 deals in the first half of 2025, according to a report released on Monday. This investment activity, while slower than the record-breaking $8.4 billion seen in 2024, still demonstrates the market's resilience and appeal to both domestic and international investors.
Investment transactions are experiencing extended timelines due to the challenging international economic conditions. Despite this moderation, the real estate market shows fundamental resilience, according to the report by JLL. This slowdown follows an exceptional 2024, which saw investments reach a historic peak, marginally surpassing the previous record of $8.4 billion set in 2007.
Institutional investors continue to participate through public market channels, including REITs, QIPs, and investments in listed entities. A standout transaction in 2025 has been Blackstone’s significant entry into India’s residential real estate sector with approximately $214 million invested to acquire up to 66 percent of Kolte-Patil Developers.
“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,” said Lata Pillai, Senior Managing Director, and Head of Capital Markets, India, JLL.
A robust pipeline of deals exceeding $1 billion points to sustained activity ahead. The surge in activity from REITs and institutional players further highlights the maturity and depth of the Indian real estate investment landscape. “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 calendar year 2025 will align with these established benchmarks,” Pillai added.
While foreign institutional capital continues to dominate, domestic institutional participation has surged remarkably since 2023, now capturing 32 percent market share in H1 2025. Foreign investors continued to take the center stage, accounting for 68 percent share of investments.
This increasing foreign investor confidence stems from government reforms enhancing market transparency and accountability. Together, these complementary investment trends signal a maturing Indian real estate market with broadening institutional appeal, the report mentioned.
“Residential sector leads marginally at 38 percent share of the total capital flow, marking a notable shift from the historical office sector preference. Within residential investments, equity strategies command 58 percent of capital flows in H1 2025, (debt instruments accounting for 42 percent), extending the equity-focused approach that gained momentum in 2024,” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
