India’s real estate sector is poised to achieve a historic milestone in 2025, with institutional investments estimated at USD 10.4 billion across 77 transactions, according to JLL Research. This represents a 17 per cent increase over 2024 and marks the second consecutive year of record-breaking inflows.

A key structural shift has emerged, with domestic institutional investors capturing a 52 per cent market share for the first time since 2014. Indian REITs and InvITs led this transformation, deploying USD 2.5 billion, while domestic private equity contributed 30 per cent of local capital deployment.

Foreign investor confidence remained resilient, with total overseas investments rising 18 per cent year-on-year. Americas-based investors increased commitments sharply to USD 2.6 billion from USD 1.6 billion in 2024.

Equity investments dominated, accounting for 83 per cent of total volumes, reflecting long-term, income-focused strategies. The office sector reclaimed leadership with a 58 per cent share, led by core assets. Bengaluru emerged as the top destination, attracting 29 per cent of total investments, followed by Mumbai-MMR.

Emerging asset classes such as data centres, student housing and healthcare gained traction. Platform commitments worth USD 11.43 billion were announced, largely driven by a major data centre joint venture involving Reliance Industries, Brookfield and Digital Realty, underscoring growing institutional confidence in India’s evolving real estate market.