Real Estate Institutional Investments Projected to Drop 37% to $3.06 Billion in H1 2025: JLL
Institutional investments in the Indian real estate market are expected to decline by 37% to $3.06 billion in the first half of 2025, according to JLL. This decline is attributed to global economic uncertainties and extended investment timelines.
Real EstateInstitutional InvestmentsJllEconomic UncertaintiesInvestment TrendsReal Estate NewsJun 23, 2025
Despite this moderation, the real estate market demonstrates fundamental resilience, it said. In comparison, the January–June period of 2024 saw investments of $4.89 billion.
Foreign investors' share in total institutional investments in Indian real estate is 68 per cent, while domestic players infused 32 per cent during the first half of the 2025 calendar year. In the past, the Americas have consistently been the highest contributors to investments. However, since 2023, there has been a significant decline in the share of investments from institutions domiciled in the USA and Canada. H1 2025 witnessed APAC lead with 37% share, the report said.
Geographically, MMR and Bengaluru collectively attracted 54% of the total real estate investments during the first half of 2025, establishing themselves as the dominant investment destinations in the country. This slowdown follows an exceptional CY 2024, which saw investments reach a historic peak, marginally surpassing the previous record of $8.4 billion set in 2007, the report said.
Institutional investors continue to participate through public market channels including REITs, QIPs, and investments in listed entities. 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% of Kolte-Patil Developers, it noted.
“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,” said Lata Pillai, senior managing director, and Head of Capital Markets, India, JLL.
While foreign institutional capital continues to dominate, domestic institutional participation has surged since 2023, now capturing 32% market share in H1 2025. Foreign Investors continued to take the centre stage accounting for 68% share of investments, the report said.
Residential sector leads marginally at 38% share of the total capital flow, marking a notable shift from the historical office sector preference. Within residential investments, equity strategies command 58% of capital flows in H1 2025, (debt instruments accounting for 42%), extending the equity-focused approach that gained momentum in 2024, said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Frequently Asked Questions
What is the projected decline in institutional investments in the Indian real estate market for H1 2025?
Institutional investments in the Indian real estate market are expected to decline by 37% to $3.06 billion in H1 2025, according to JLL.
What factors are contributing to the decline in real estate investments?
The decline is attributed to challenging international economic conditions and political uncertainties, which are causing extended investment timelines.
What is the share of foreign investors in total institutional investments in Indian real estate for H1 2025?
Foreign investors' share in total institutional investments in Indian real estate is 68 per cent, while domestic players infused 32 per cent during the first half of the 2025 calendar year.
Which regions attracted the most real estate investments in H1 2025?
MMR and Bengaluru collectively attracted 54% of the total real estate investments during the first half of 2025, establishing themselves as the dominant investment destinations in the country.
What is the notable shift in the real estate sector in terms of investment preferences?
The residential sector leads marginally at 38% share of the total capital flow, marking a notable shift from the historical office sector preference. Within residential investments, equity strategies command 58% of capital flows in H1 2025.
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