2016.07.10 Tel Aviv People and Places 06982
NEW DELHI. Institutional investments in Indian real estate are projected to soar to an estimated $10.4 billion across 77 transactions in 2025. This landmark figure represents a 17 per cent increase from the previous year’s record of $8.9 billion. A comprehensive report by JLL released on Monday highlights this massive influx of capital into the domestic property market. Investors are showing unprecedented confidence in India’s long-term growth story by building wealth through stabilized, income-generating properties.
Domestic Players Drive Institutional Investments
For the first time since 2014, domestic institutional investors have captured a commanding 52 per cent market share. This shift signals a maturing domestic capital market. Indian REITs and Infrastructure Investment Trusts (InvITs) acted as the primary catalysts for this change. These entities deployed $2.5 billion, accounting for 56 per cent of all core asset acquisitions during the year.
Furthermore, Indian private equity players provided additional momentum. They contributed 30 per cent of the total domestic capital deployment. While foreign investment declined as a percentage of total activity, absolute foreign capital deployment actually rose by 18 per cent year-over-year. Investors from the Americas showed particularly robust commitment, increasing their stakes from $1.6 billion to $2.6 billion.
Indian Real Estate: Office Sector and Regional Dominance
The office sector has reasserted its dominance as the preferred asset class for big-ticket capital. It captured a commanding 58 per cent market share in 2025, attracting $6 billion in strategic investments. This represents a significant recovery from 2024, when the residential sector temporarily led the market. Commercial properties have once again become the primary magnet for institutional capital.
Additionally, Bengaluru emerged as the top geographic destination for these funds. The city captured 29 per cent of total institutional deployment in 2025. Interestingly, Tier 2 cities also began appearing on the radar, receiving $175 million in investment. This geographic diversification suggests that the real estate boom is gradually spreading beyond the traditional metropolitan hubs.
Beyond immediate deals, the industry witnessed platform commitments totaling $11.43 billion. Companies intend to deploy this capital gradually over the next three to seven years. This long-term pipeline ensures that institutional investments in Indian real estate will remain a cornerstone of the national economy for the foreseeable future.
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