Institutional investments in India’s real estate sector peaked at a new high of $10.4 billion in 2025 across 77 transactions. This marks the second straight year of record-breaking performance and a 17% rise from last year’s $8.9 billion, according to property consultant JLL.
Beyond immediate transactions, 2025 also witnessed significant platform commitments totalling $11.43 billion, designed for gradual deployment over the next 3-7 years. The majority of the commitment amount -- $11 billion -- stems from a single platform deal established by Digital Connexion, a strategic joint venture comprising Reliance Industries, Brookfield Asset Management and Digital Realty Trust Inc for data centres.
The office sector has reasserted its dominance in institutional investments, capturing a 58% market share in 2025. This represents a significant recovery from 2024, when the residential sector led with 45% share, followed by office at 28%.
JLL said that as the market matures, investment horizons are expanding beyond traditional sectors, with emerging asset classes including data centers, student housing, life sciences, and healthcare gaining traction.
Bengaluru has emerged as the dominant investment destination, capturing 29% of total institutional deployment in 2025. Mumbai-MMR, the financial capital, maintains a 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. While modest, this signals institutional willingness to explore emerging markets for value-add opportunities and portfolio diversification.
“2025 marked a pivotal transformation in India's real estate investment landscape, with office properties reclaiming their position as the institutional capital magnet, attracting USD 6 billion through strategic investments that more than doubled from the previous year,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Das added that they also observed a strategic recalibration in the residential sector, where international confidence was reinforced by a major global investor's strategic partnership with a leading domestic developer, signalling a maturation toward equity-centric investment approaches across both sectors.