$10.4 bn: India logs highest-ever real estate investments across 77 deals

For the first time since 2014, domestic institutional investors have captured a commanding 52% market share

Institutional investments into India's real estate sector soared to an estimated $10.4 billion across 77 transactions in 2025, marking the second consecutive year of record-breaking performance, shows data analysed by consulting firm JLL. This figure stands as the highest on record and represents a 17% increase from 2024'S $ 8.9 billion.

 

 Beyond direct investments, platform commitments touched $11.43 billion, indicating deep long-term conviction from global and domestic players. Notably, $11 billion—nearly the entire amount—came from a single large digital infrastructure platform: a joint venture between Reliance Industries, Brookfield Asset Management and Digital Realty Trust to develop data centres under the Digital Connexion banner. 

2025 witnessed significant platform commitments totalling USD 11.43 billion, designed for gradual deployment over the next 3-7 year

 

 Domestic Capital Overtakes Foreign Investors—A Structural Shift

 

In a historic change, domestic institutional investors commanded 52% of total investment share in 2025, their first leadership position since 2014. This marks a dramatic shift from the 2015–2024 decade dominated by foreign capital.

 

Two factors reshaped the landscape:

 

REITs and InvITs deployed $2.5 billion, accounting for 56% of core asset acquisitions.

 

Domestic private equity funds contributed 30% of domestic investments, adding further depth.

 

This shift indicates a maturing capital market, with Indian institutions adopting sophisticated, long-horizon investment strategies once dominated by global players.

 

Lata Pillai, Senior Managing Director & Head of Capital Markets at JLL India, highlighted:

“The two-fold rise in core asset acquisitions shows investors are not just betting on India's story—they are building long-term wealth. Domestic capital leading the market for the first time since 2014 signals a structural transformation, not a cyclical trend.”

 

While foreign institutional investment declined as a percentage of total activity, absolute foreign capital deployment increased 18% year-over-year. Americas-based investors showed 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.

 

Equity investments continue to dominate institutional capital deployment strategies, commanding 83% of total investment volume.  

 

Office Sector Reclaims Top Spot With $6 Billion Investment

 

India’s institutional capital flows realigned strongly toward commercial assets in 2025:

 

Office assets captured 58% of investment share, overtaking residential (which led in 2024).

Office investments more than doubled year-on-year, reaching USD 6 billion.

Nearly two-thirds went into stabilized, income-generating core assets, showing institutional preference for predictable returns.

 

Emerging sectors such as data centres, life sciences, healthcare real estate and student housing are gaining traction, further diversifying the investment landscape.

 

“Office properties have reclaimed their position as the capital magnet. The ecosystem is maturing toward equity-led, long-term investment strategies across sectors," said Dr. Samantak Das, Chief Economist at JLL India.

 

Bengaluru emerges as dominant investment destination. 

 

The institutional investment landscape demonstrates clear geographic preferences, with Bengaluru capturing 29% of total institutional deployment in 2025.

 

Mumbai-MMR, the financial capital, maintains strong institutional appeal, driven by corporate headquarters concentration and premium commercial assets. Notably, Tier 2 cities received $175 million in deployment, representing 2% of total investments.

 

"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 stabilized, income-generating assets in established commercial markets” said Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

 

"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 commitment of 2025 was established through a $11.3 bn joint venture comprising Mukesh Ambani's Reliance Industries Ltd., Brookfield Asset Management Ltd., and Digital Realty Trust Inc for data centres., highlighting the significant investment activity in the digital infrastructure sector," added the report.