Institutional investments in India’s real estate sector are projected to soar to $10.4 billion: Report
India’s real estate sector is expected to reach an unprecedented milestone in 2025, with institutional investments projected to soar to an estimated $10.4 billion across 77 transactions, marking the second consecutive year of record-breaking performance. This figure stands as the highest on record and represents a 17% increase from the previous year’s exceptional performance of $8.9 billion, according to a report released by JLL, a real estate consultancy firm.
The sustained momentum demonstrates the resilience and attractiveness of India’s real estate market to institutional investors. This consecutive record-setting performance positions India’s real estate market as one of the most dynamic and rapidly evolving investment landscapes in the Asia-Pacific region, signalling robust opportunities for continued institutional participation and market expansion.
Beyond immediate transactions, 2025 witnessed significant platform commitments totalling $11.43 billion, designed for gradual deployment over the next 3-7 years. The majority of the commitment amount, $11 billion, stems from a single platform deal established by Digital Connexion, a strategic joint venture comprising Reliance Industries Ltd., Brookfield Asset Management Ltd. and Digital Realty Trust Inc. for data centres. The remaining commitments are allocated toward upcoming commercial and residential development projects.
“Institutional investment in real estate is poised to drive exceptional performance in 2025, with an estimated $10.4 billion in capital deployed across 77 transactions, a historic achievement that builds on our record-breaking momentum from 2024,” said Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL.
“For the first time since 2014, domestic institutional investors have captured a commanding 52% market share. Also, the two-fold increase in core asset acquisitions in 2025 demonstrates that investors are not just betting on India’s growth story, but are actively building long-term wealth through our stabilised, income-generating properties. This convergence of domestic institutional strength and sustained foreign confidence creates an unprecedented foundation for continued market expansion,” Pillai said.
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Domestic capital leads historic transformation in India’s Real estate investment market
According to the report, the investment landscape underwent a pivotal shift in 2025, with domestic institutional investors capturing a commanding 52% market share, marking the first time domestic capital has led since 2014. This marks a significant reversal from the 2015-2024 period when foreign institutional investors dominated, and contrasts with the post-GFC era (2010-2014) when opportunistic domestic funds initially drove market activity.
Indian REITs and Infrastructure Investment Trusts (InvITs) have emerged as the primary catalysts behind this transformation, deploying $2.5 billion, representing 56% of core asset acquisitions. Indian private equity players have contributed additional momentum, accounting for 30% of total domestic capital deployment. This trend reflects the maturation of India’s REIT market and growing institutional confidence in sophisticated real estate investment vehicles, according to the report.
Sustained foreign investment confidence despite shifting dynamics
While foreign institutional investment declined as a percentage of total activity, the absolute amount of foreign capital deployment increased by 18% year-over-year, demonstrating continued confidence in Indian real estate fundamentals. Americas-based investors showed a particularly robust commitment, increasing their investment from $1.6 billion in 2024 to $2.6 billion in 2025—a substantial 63% year-over-year growth, according to the report.
Equity investments continue to dominate institutional capital deployment strategies, commanding 83% of total investment volume. This overwhelming preference for equity structures reflects mature institutional investment approaches focused on long-term wealth creation rather than leveraged return enhancement, positioning investors to capitalise on India’s real estate growth trajectory while maintaining conservative risk profiles, the report said.
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Bengaluru is a dominant investment destination
According to the report, Bengaluru emerged as a dominant investment destination. The institutional investment landscape exhibits clear geographic preferences, with Bengaluru accounting for 29% of total institutional deployment in 2025.
This leadership position reflects the city’s status as India’s technology capital and its robust commercial real estate fundamentals. Mumbai-MMR, the financial capital, maintains a strong institutional appeal, driven by the concentration of corporate headquarters and premium commercial assets.
Notably, Tier 2 cities received $175 million in deployment, representing 2% of total investments. While modest, this signals an institutional willingness to explore emerging markets for value-added opportunities and portfolio diversification, indicating the broadening scope of India’s institutional real estate investment landscape, the report said.
“2025 marked a pivotal transformation in India’s real estate investment landscape, with office properties reclaiming their position as the institutional capital magnet, attracting $6 billion through strategic investments that more than doubled from the previous year. Notably, two-thirds of these investments were concentrated in prime core office properties, demonstrating institutional preference for stabilised, income-generating assets in established commercial markets,’ said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
“Simultaneously, we observed a strategic recalibration in the residential sector, where international confidence was reinforced by a major global investor’s strategic partnership with a leading domestic developer, signalling a maturation toward equity-centric investment approaches across both sectors. This shift reflects institutional investors’ growing confidence in India’s commercial real estate fundamentals and marks the emergence of a more sophisticated, equity-driven investment ecosystem,” said Das.
