Institutional Investments in Indian Real Estate Hit Record $10.4 Billion in 2025

Institutional investments in Indian real estate reached an all-time high of $10.4 billion in 2025, marking a 17 per cent increase over the previous year, as confidence returned strongly across commercial and residential asset classes. Data released by JLL India highlights growing participation from both domestic and foreign investors, reflecting renewed optimism in the sector’s long-term fundamentals.

A notable shift during the year was the dominance of domestic capital, which accounted for 52 per cent of total institutional investments, while foreign investors contributed the remaining 48 per cent. This balance underscores the increasing maturity of India’s real estate market, where local investors such as family offices, corporate groups, NBFCs and real estate funds are playing a more decisive role in funding large developments.

Among asset classes, office real estate emerged as the clear leader, capturing 58 per cent of total institutional inflows in 2025. The strong performance of the office segment was supported by steady leasing activity, rising demand for Grade A workspaces, and India’s continued strength as a global services and technology hub. Despite evolving workplace trends, offices remain a preferred investment destination for long-term yield stability.

The residential segment accounted for 20 per cent of total investments, reflecting sustained end-user demand and improved project execution by established developers. Investors showed particular interest in well-located housing projects across major metropolitan regions, supported by stable sales momentum and better regulatory transparency.

Emerging asset classes also gained traction. Data centres and logistics and industrial parks each accounted for 8 per cent of total investments, driven by digitalisation, e-commerce growth and supply chain expansion. Retail assets captured a 4 per cent share, while hotels accounted for 2 per cent, indicating a gradual recovery in discretionary and hospitality-related investments.

Institutional investment figures include inflows from pension funds, private equity, sovereign wealth funds, REITs and capital raised through Qualified Institutional Placements. With diversified asset demand and strong domestic participation, India’s real estate sector is expected to remain an attractive destination for long-term institutional capital in the coming years.