New Delhi, Dec 22 (.) Institutional investments into India’s real estate sector surged to an estimated USD 10.4 billion across 77 transactions in 2025, marking the second consecutive year of record-breaking inflows, according to data analysed by global real estate consultancy JLL.
The figure represents a 17% increase over 2024’s USD 8.9 billion, making it the highest level of institutional investment ever recorded in the sector.
Beyond direct investments, platform commitments touched USD 11.43 billion, underscoring strong long-term confidence from both global and domestic investors.
Nearly the entire amount, about USD 11 billion, was driven by a single large digital infrastructure platform, a joint venture between Reliance Industries, Brookfield Asset Management and Digital Realty Trust, which is developing data centres under the Digital Connexion brand.
In a significant structural shift, domestic institutional investors accounted for 52% of total investments in 2025, marking their first leadership position since 2014.
This represents a sharp reversal from the 2015–2024 period, which was largely dominated by foreign capital. REITs and InvITs deployed USD 2.5 billion, accounting for 56% of core asset acquisitions, while domestic private equity funds contributed 30% of domestic investments.
The change highlights the growing maturity of India’s capital markets, with domestic institutions increasingly adopting long-horizon, sophisticated investment strategies traditionally associated with global investors.
While foreign institutional investment declined as a share of total activity, absolute foreign capital deployment rose 18% year-on-year. Investors from the Americas showed particularly strong momentum, increasing their investments from $1.6 billion in 2024 to $2.6 billion in 2025, a 63% year-on-year jump.
Equity investments continued to dominate, accounting for 83% of total institutional investment volume.
Sectoral allocation shifted decisively toward commercial real estate in 2025. Office assets captured 58% of total investment share, overtaking residential, which led in 2024.
Office investments more than doubled year-on-year to USD 6 billion, with nearly two-thirds flowing into stabilised, income-generating core assets, reflecting a preference for predictable returns.
At the same time, emerging segments such as data centres, life sciences, healthcare real estate and student housing gained traction, contributing to a more diversified investment landscape.
Geographically, Bengaluru emerged as the top investment destination, capturing 29% of total institutional deployment in 2025. Mumbai Metropolitan Region (MMR) continued to attract strong investor interest, driven by its concentration of corporate headquarters and premium commercial assets.
Tier 2 cities received USD 175 million, accounting for 2% of total investments, signalling early but growing institutional interest beyond major metros.
. VK SAS SRY