Institutional Real Estate Investments in India Projected to Drop 37% in H1 2025
Institutional investments in Indian real estate are expected to decline by 37% to USD 3.06 billion during the first half of 2025, according to JLL, due to global economic uncertainties.
Real EstateInstitutional InvestmentsIndiaJllGlobal EconomyReal EstateJun 23, 2025
Foreign investors continue to play a dominant role, contributing 68% of the total institutional investments, while domestic players account for the remaining 32% during the first half of 2025. The global economic uncertainties and political instability are causing extended timelines for investment transactions, according to the consultant.
Despite these challenges, institutional investors are still actively participating through public market channels. These channels include 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, remains optimistic about the future of India's real estate sector. She stated, 'India's real estate sector remains a compelling investment destination, buoyed by both domestic and international confidence, despite the global economic uncertainties presenting short-term challenges in the first half of 2025.'
Pillai further noted that a robust pipeline of deals exceeding USD 1 billion points to sustained activity ahead. '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 the calendar year 2025 will align with these established benchmarks,' she added.
The housing segment continues to attract the highest share of institutional investments, accounting for 38% of the total. This segment's resilience underscores the ongoing demand for residential properties in India, driven by a growing population and urbanization trends.
Frequently Asked Questions
What is the projected decline in institutional real estate investments in India for H1 2025?
Institutional investments in Indian real estate are projected to decline by 37% to USD 3.06 billion during the first half of 2025.
What percentage of total institutional investments in Indian real estate comes from foreign investors?
Foreign investors contribute 68% of the total institutional investments in Indian real estate.
What are the main public market channels through which institutional investors participate in Indian real estate?
Institutional investors participate through Real Estate Investment Trusts (REITs), Qualified Institutional Placement (QIPs), and investments in listed entities.
Which segment of the real estate market is attracting the highest share of institutional investments?
The housing segment is attracting the highest share, accounting for 38% of the total institutional investments.
What is Lata Pillai's role at JLL and her outlook on the Indian real estate market?
Lata Pillai is the Senior Managing Director and Head of Capital Markets, India, at JLL. She is optimistic about the Indian real estate sector, noting its resilience and continued attractiveness to both domestic and international investors.
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