India's real estate sees record $10.4B investment surge
What's the story
India's real estate sector has witnessed a historic surge, attracting a whopping $10.4 billion in institutional investments in 2025. The growth is mainly attributed to strong domestic capital, which captured a 52% market share for the first time since 2014. The office segment was the biggest draw, bringing in $6 billion, with rising interest in emerging asset classes and prime core properties.
Market resilience
India emerges as a global investment hub
The record-breaking performance of India's real estate sector is a testament to its resilience and attractiveness to both domestic and international investors. The shift in capital allocation toward specific segments indicates more focused and strategic investment strategies. This year marks a major milestone for the sector, with institutional investments surpassing the previous high of $8.4 billion set in 2024, according to data from JLL India.
Investment dynamics
Domestic capital plays key role in record investment
Domestic institutional capital has been instrumental in this record-breaking year. For the first time since 2014, domestic investors have captured a whopping 52% market share. This historic achievement is a major shift in the capital markets ecosystem and indicates that investors are not only betting on India's growth story but also building long-term wealth through stabilized, income-generating properties.
Investment leaders
REITs and InvITs lead domestic investment surge
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) led the domestic investment surge, deploying $2.5 billion or 56% of core asset acquisitions. Indian private equity players contributed 30% to total domestic capital deployment, reflecting growing confidence in the country's commercial and income-generating real estate. Despite a decline in share of total activity, absolute deployment by foreign investors grew 18% year-on-year, underscoring sustained global confidence in India's real estate fundamentals.
Sector dominance
Office sector dominates institutional investments in 2025
The office sector reclaimed its position as the dominant player, capturing 58% of institutional investments, a significant jump from 28% in 2024. Residential-led activity moderated during this period. Samantak Das, Chief Economist and Head of Research and REIS at JLL India, said that "2025 marked a pivotal transformation in India's real estate investment landscape," with office properties attracting $6 billion through strategic investments.
Investment trends
Platform commitments and emerging asset classes
Platform commitments over the next three to seven years totaled $11.43 billion, with $11 billion coming from Digital Connexion, a joint venture of Reliance Industries, Brookfield Asset Management, and Digital Realty for data centers. The rest is earmarked for upcoming commercial and residential projects. Emerging asset classes like data centers, student housing, life sciences, and healthcare are gaining traction as diversification strategies in India's real estate market.