Institutional Real Estate Investments in India Reach $3.1 Billion in First Half of 2025
Institutional investments in the Indian real estate market reached $3.1 billion across 30 deals in the first half of 2025, showcasing resilience despite global economic challenges.
Real EstateInstitutional InvestmentsIndian MarketBlackstoneReitsReal EstateJun 23, 2025
Investment transactions are experiencing extended timelines due to challenging international economic conditions. Despite this moderation, the real estate market demonstrates fundamental resilience, said the report by JLL. The slowdown is attributed to global economic uncertainties, but the market continues to attract both domestic and international investors.
Institutional investors continue to participate through public market channels, including Real Estate Investment Trusts (REITs), Qualified Institutional Placements (QIPs), and investments in listed entities. One of the standout transactions of 2025 has been Blackstone's significant entry into India's residential real estate sector, with approximately $214 million invested to acquire up to 66 per cent of Kolte-Patil Developers.
Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL, commented, “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.” A robust pipeline of deals exceeding $1 billion points to sustained activity ahead, further highlighting 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. Pillai added, “We anticipate that capital flows for the calendar year 2025 will align with these established benchmarks.” While foreign institutional capital continues to dominate, capturing 68 per cent of the market share, domestic institutional participation has surged remarkably since 2023, now capturing 32 per cent market share in H1 2025.
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.
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, noted, “The residential sector leads marginally at 38 per cent share of the total capital flow, marking a notable shift from the historical office sector preference. Within residential investments, equity strategies command 58 per cent of capital flows in H1 2025, with debt instruments accounting for 42 per cent, extending the equity-focused approach that gained momentum in 2024.”
Frequently Asked Questions
What is the total amount of institutional investments in the Indian real estate market in the first half of 2025?
The total amount of institutional investments in the Indian real estate market in the first half of 2025 reached $3.1 billion across 30 deals.
What is the standout transaction of 2025 in the Indian real estate market?
The standout transaction of 2025 has been Blackstone's significant entry into India's residential real estate sector, with approximately $214 million invested to acquire up to 66 per cent of Kolte-Patil Developers.
What percentage of the market share is held by foreign investors in the first half of 2025?
Foreign investors continue to dominate, accounting for 68 per cent of the market share in the first half of 2025.
What is the main reason for the increasing foreign investor confidence in India's real estate market?
The increasing foreign investor confidence in India's real estate market stems from government reforms enhancing market transparency and accountability.
What sector is leading in terms of capital flow in the first half of 2025?
The residential sector leads marginally at 38 per cent share of the total capital flow in the first half of 2025.
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