India’s real estate sector is set for a landmark year in 2025, with institutional investments expected to reach a record USD 10.4 billion across 77 transactions. This marks the second consecutive year of record-breaking performance and represents a 17% increase over 2024’s exceptional USD 8.9 billion, cementing India’s position as one of the most dynamic real estate investment markets in the Asia-Pacific region.
The surge underscores the resilience and growing attractiveness of India’s real estate market to institutional investors, with both domestic and global players increasing their participation. Beyond individual transactions, 2025 also saw significant platform commitments totaling USD 11.43 billion, structured for deployment over the next three to seven years. The majority of this, USD 11 billion, comes from a single platform deal led by Digital Connexion, a joint venture between Reliance Industries Ltd., Brookfield Asset Management Ltd., and Digital Realty Trust Inc, focusing on data centers. The remainder is earmarked for upcoming commercial and residential developments.
“Institutional investment in real estate is poised to drive exceptional performance in 2025, with an estimated USD 10.4 billion in capital deployed across 77 transactions—a historic achievement that builds on our record-breaking momentum from 2024. What makes this milestone particularly significant is the fundamental transformation we are witnessing in our capital markets ecosystem. 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 stabilized, income-generating properties. This convergence of domestic institutional strength and sustained foreign confidence creates an unprecedented foundation for continued market expansion,” said Lata Pillai, Senior Managing Director & Head of Capital Markets, India, JLL.
Domestic Capital Drives Historic Shift
The institutional investment landscape underwent a pivotal shift in 2025, with domestic investors capturing 52% of the market for the first time since 2014. This reverses a decade-long trend (2015-2024) dominated by foreign institutional investors and reflects the growing maturity of India’s real estate capital markets.
Indian REITs and Infrastructure Investment Trusts (InvITs) have been key drivers, deploying USD 2.5 billion, representing 56% of core asset acquisitions. Private equity players contributed an additional 30% of domestic capital. This trend highlights increasing investor confidence in sophisticated, income-generating real estate vehicles and a shift toward long-term wealth creation rather than opportunistic gains.
Foreign Investor Confidence Remains Strong
While domestic capital gained market leadership, foreign investment also remained robust. Overall foreign capital deployment rose 18% year-on-year, demonstrating sustained confidence in India’s real estate fundamentals. Investors from the Americas showed particularly strong growth, with capital commitments increasing from USD 1.6 billion in 2024 to USD 2.6 billion in 2025, a 63% year-on-year increase.
Equity investments dominated institutional capital deployment, accounting for 83% of total investment volume. This preference reflects a mature investment approach focused on long-term wealth creation and stable returns, rather than leveraged strategies.
Strategic Preferences Across Asset Classes
The office sector regained dominance in 2025, attracting 58% of institutional investments, rebounding from 2024 when residential properties led with a 45% share. This shift indicates a strategic recalibration as investors prioritize stabilized, income-generating office assets.
Emerging asset classes such as data centers, student housing, life sciences, and healthcare are gaining traction, reflecting investors’ appetite for diversification and alignment with evolving market dynamics. The largest platform deal in 2025—the USD 11.3 billion Digital Connexion joint venture—underscores the growing interest in digital infrastructure.
“2025 marked a pivotal transformation in India's real estate investment landscape, with office properties reclaiming their position as the institutional capital magnet, attracting USD 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 stabilized, income-generating assets in established commercial markets. 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 Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Geographic Focus Highlights Bengaluru and Mumbai
Bengaluru emerged as the most preferred investment destination, capturing 29% of institutional capital in 2025. The city’s leadership reflects its status as India’s technology hub with strong commercial real estate fundamentals. Mumbai-MMR, India’s financial capital, retained strong institutional appeal, driven by premium office and corporate assets.
Tier-2 cities accounted for USD 175 million, or 2% of total investments, signalling investor willingness to explore emerging markets for value-add opportunities and portfolio diversification.
Looking Ahead: Structural Growth and Market Maturity
The consecutive record-breaking performance of 2024-2025 demonstrates India’s real estate market’s capacity to maintain momentum while evolving structurally. The shift toward domestic capital leadership signals a permanent transformation, moving from opportunistic post-GFC strategies to long-term, equity-focused wealth creation.
As the REIT ecosystem expands and institutional familiarity with sophisticated real estate vehicles grows, this balanced participation of domestic and foreign investors lays a strong foundation for further market growth. Economic resilience, transparency improvements, and strategic capital allocation are expected to sustain the upward trajectory.
India is poised to emerge as one of the most attractive institutional real estate markets globally, with 2025 marking a milestone year that could define investment trends for the next decade.
