India Records Highest-Ever Real Estate Investments at $10.4 Billion in 2025

• Domestic investors lead for the first time since 2014 with 52% share

• Office assets attract $6 billion, reclaiming top position

• Data centre platforms drive long-term commitments worth $11.43 billion

India’s real estate sector witnessed an unprecedented surge in institutional investments in 2025, clocking $10.4 billion across 77 transactions, the highest annual inflow ever recorded, according to data analysed by global real estate consultancy JLL. The figure represents a 17% rise over 2024, when investments stood at $8.9 billion, marking the second consecutive year of record-breaking performance.

Beyond direct deal activity, platform-level commitments reached $11.43 billion, signalling strong long-term confidence among investors planning capital deployment over the next three to seven years. A significant portion of this commitment—nearly $11 billion—came from a single digital infrastructure platform, a joint venture between Reliance Industries, Brookfield Asset Management, and Digital Realty Trust, established to develop large-scale data centres under the Digital Connexion brand.

Domestic Capital Takes the Lead

A major structural shift defined the investment landscape in 2025. Domestic institutional investors accounted for 52% of total investments, marking their first leadership position since 2014. This represents a sharp reversal from the previous decade, which was largely dominated by foreign capital.

Two developments played a key role in this transition. REITs and InvITs deployed $2.5 billion, accounting for 56% of core asset acquisitions, while domestic private equity funds contributed 30% of domestic investments, deepening India’s long-term capital base.

Commenting on the trend, Lata Pillai, Senior Managing Director & Head of Capital Markets at JLL India, said the surge in core asset acquisitions reflects a fundamental change in investor behaviour. According to her, domestic capital taking the lead signals a structural transformation rather than a cyclical shift, with institutions increasingly focused on long-horizon wealth creation.

Foreign Investors Stay Active

While the share of foreign institutional investment declined proportionately, absolute foreign capital inflows rose 18% year-on-year. Investors from the Americas showed particularly strong momentum, increasing investments from $1.6 billion in 2024 to $2.6 billion in 2025, a sharp 63% annual growth.

Equity-led strategies continued to dominate institutional deployment, accounting for 83% of total investment volume, reinforcing confidence in India’s long-term real estate fundamentals.

Office Sector Regains Crown

Commercial real estate emerged as the biggest beneficiary in 2025, with the office sector attracting $6 billion, more than double the previous year’s inflows. Office assets accounted for 58% of total institutional investments, overtaking the residential segment, which had led in 2024.

Nearly two-thirds of office investments were directed toward stabilized, income-generating core assets, highlighting investor preference for predictable cash flows and lower risk.

“Office properties have reclaimed their position as the capital magnet,” said Dr. Samantak Das, Chief Economist at JLL India, noting a clear shift toward equity-driven, long-term investment strategies across asset classes.

Cities and Emerging Segments

Geographically, Bengaluru emerged as the top investment destination, capturing 29% of total institutional capital in 2025. Mumbai Metropolitan Region (MMR) continued to attract strong interest, supported by its concentration of corporate headquarters and premium commercial stock. Tier-2 cities, while still emerging, saw $175 million in investments, accounting for about 2% of total inflows.

At the same time, alternative real estate segments such as data centres, life sciences, healthcare assets, and student housing gained traction, reflecting growing investor appetite for diversification aligned with India’s evolving economic and demographic trends.

JLL noted that the massive data centre platform led by Reliance, Brookfield, and Digital Realty stands out as the largest platform commitment of 2025, underlining the rising importance of digital infrastructure in India’s real estate investment story.