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Institutional investments in real estate declined by 37 per cent year-on-year in H1CY25, totalling almost $3.1 billion (approximately $3.068 billion) across 30 deals, according to JLL.
Investment transactions are experiencing extended timelines due to challenging international economic conditions and political uncertainties, with several capital deployment decisions likely shifting into 2026.
2024 marked a record year
The calendar year 2024 saw investments reach a historic peak, marginally surpassing the previous record of $8.4 billion set in 2007.
Blackstone leads with landmark transaction
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The standout transaction of 2025 has been Blackstone’s significant entry into India’s residential real estate sector, with approximately $214 million invested to acquire up to 66 per cent of Kolte-Patil Developers.
“A robust pipeline of deals exceeding $1 billion points to sustained activity ahead. The surge in activity from Reits and institutional players further highlights the maturity and depth of the Indian real estate investment landscape. The real estate market has consistently demonstrated its staying power, with annual investments surpassing the $5 billion threshold across the previous five years, and we anticipate that capital flows for calendar year 2025 will align with these established benchmarks,” said Lata Pillai, senior managing director and head of capital markets, India, JLL.
Domestic capital gains ground
Of the total institutional capital in the sector, domestic institutional participation accounted for a 32 per cent market share in H1CY25, while the remaining share came from foreign investors.
In the past, the Americas have consistently been the highest contributors to investments. However, since 2023, there has been a significant decline in the share of investments from institutions domiciled in the US and Canada, JLL noted.
APAC region leads inflows
In H1CY25, the Asia-Pacific (APAC) region led investments with a 37 per cent share. MMR and Bengaluru collectively attracted 54 per cent of the total real estate investments. The residential segment accounted for 38 per cent of the total capital flow.
“Within residential investments, equity strategies commanded 58 per cent of capital flows in H1CY25, with debt instruments accounting for the remaining 42 per cent, extending the equity-focused approach that gained momentum in 2024,” said Dr Samantak Das, chief economist and head of research and REIS, India, JLL.
Market diversifies amid maturation
Despite ongoing challenges, the market’s maturation is simultaneously creating compelling opportunities in alternative and emerging asset classes, potentially diversifying investment flows and strengthening the overall market ecos
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