Institutional Investments in Indian Real Estate to Cross $10 Billion in 2025, Led by Offices and Bengaluru: Report

New Delhi, December 22, 2025 Institutional investments in Indian real estate are set to surpass $10 billion in 2025, according to a report released on Monday, marking the second consecutive year of record-breaking performance. The projected total of $10.4 billion, across 77 transactions, represents a 17 percent increase over 2024’s $8.9 billion, highlighting continued investor confidence in India’s property market. The report by JLL also notes that platform commitments for gradual deployment over the next three to seven years have reached $11.43 billion, signaling that investors are not only engaging in immediate deals but are actively planning long-term capital deployment. “For the first time since 2014, domestic institutional investors have captured a commanding 52 percent market share,” said Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL. She added that the two-fold increase in core asset acquisitions in 2025 reflects investors’ focus on stabilised, income-generating properties, underscoring a strategy of long-term wealth creation rather than short-term speculation. Indian REITs and Infrastructure Investment Trusts (InvITs) have been key drivers of this shift, deploying $2.5 billion, which accounts for 56 percent of core asset acquisitions. Domestic private equity players have also contributed significantly, providing about 30 percent of total domestic capital deployment. Meanwhile, foreign institutional investments, though slightly declining as a share of total activity, saw absolute deployment rise 18 percent year-on-year, demonstrating sustained global confidence in India’s real estate fundamentals. Investors from the Americas led this growth, increasing their investment from $1.6 billion in 2024 to $2.6 billion in 2025, a 63 percent year-on-year increase. The office sector has reasserted its dominance, capturing 58 percent of institutional investment in 2025. This marks a significant recovery from 2024, when the residential sector led with a 45 percent share, followed by offices at 28 percent. Experts attribute the shift to strategic acquisitions of high-quality office spaces, reflecting renewed demand from corporates and the sustained growth of India’s service and technology sectors. Geographically, Bengaluru has emerged as the preferred investment destination, attracting 29 percent of total institutional deployment. Other Tier 1 and Tier 2 cities have seen more selective investment, with Tier 2 cities receiving $175 million, representing just two percent of total institutional capital. “2025 marked a pivotal transformation in India’s real estate investment landscape, with office properties reclaiming their position as the institutional capital magnet,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. He noted that strategic investments in office properties accounted for nearly $6 billion, more than doubling from the previous year. Analysts believe the trend reflects a broader confidence in India’s economic growth, corporate expansion, and the stabilisation of commercial real estate post-pandemic. Domestic investors are increasingly seeking stable returns through income-generating assets, while foreign investors continue to bet on India’s long-term growth story, particularly in commercial hubs and IT-driven cities. The 2025 performance demonstrates the resilience and maturity of India’s real estate market, showing a clear preference for core, income-yielding properties and office assets. As institutional capital continues to flow, experts predict that India’s real estate sector will maintain strong momentum, attracting both domestic and international investors while supporting urban development and economic growth. Institutional Investments in Indian Real Estate to Cross $10 Billion in 2025, Led by Offices and Bengaluru: Report India’s real estate market is hitting new records, with institutional investments expected to surpass $10 billion in 2025, according to a recent JLL report. Across 77 transactions, investments are projected at $10.4 billion, up 17% from 2024’s $8.9 billion, showing strong confidence from both domestic and foreign investors. The report highlights that platform commitments for gradual deployment over the next 3-7 years have reached $11.43 billion, reflecting a long-term approach to building wealth through stable, income-generating properties. Lata Pillai, JLL’s Senior Managing Director, said domestic investors now hold 52% of the market, and core asset acquisitions have doubled, proving that India’s real estate is a preferred option for steady, long-term returns. REITs and InvITs led the way, deploying $2.5 billion, while private equity players contributed another 30% of domestic capital. Foreign investors also increased their investments by 18% in absolute terms, with the Americas showing the highest growth—from $1.6 billion in 2024 to $2.6 billion in 2025, up 63%. The office sector has regained its lead, capturing 58% of institutional investments after residential dominated last year. Bengaluru emerged as the top destination, attracting 29% of total institutional capital. Tier 2 cities received $175 million, highlighting that most capital is flowing into Tier 1 urban hubs. Dr Samantak Das, Chief Economist at JLL, said 2025 marked a pivotal transformation, with $6 billion flowing into office properties, more than double the previous year. Analysts note that India’s growing economy, corporate expansion, and tech-driven urban hubs continue to attract both domestic and international investors, supporting the long-term growth of the real estate sector.