India's real estate sector is growing at a record pace due to changing market conditions and strong confidence of institutional investors. The special thing is that in the year 2025, investment in the real estate sector has broken all previous records. If we look at the figures, in the year 2025, an investment of more than Rs 255 crore has been seen in this sector every day. According to data from property consultancy firm JLL India, this calendar year has seen a record investment of $ 10.4 billion (Rs 93,200 crore) in the form of institutional investment in the property sector, which has crossed the previous high of $ 8.4 billion in 2024.
Srini Srinivasan, MD, Kotak Alternate Asset Managers, said that strong economic growth, combined with strategic policy and improving governance, is positioning India as an attractive destination for global captive centres. Liquidity enabled by the REIT policy and strong participation of domestic capital in REITs have also assured attractive returns to investors. Domestic institutional capital played an important role this year. For the first time since 2014, domestic investors achieved 52 percent market share.
Latha Pillai, Senior MD and Head of Capital Markets in India, JLL, said that this achievement marks a fundamental change in the capital markets ecosystem. For the first time since 2014, domestic institutional investors gained 52 percent market share. The doubling of growth in core assets shows that investors are not only betting on India's growth but also building long-term wealth through stable, income-generating assets. He said the confluence of domestic institutional strength and continued confidence of foreign investors is creating an unprecedented foundation for the continued expansion of the market. Due to economic growth and infrastructure development efforts, institutional investment in India's real estate sector is expected to reach a record $10.4 billion by 2025, making the country a mark on the global map.
Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) led domestic investments, with $2.5 billion inflows, accounting for 56 per cent of total asset acquisitions. Indian private equity firms contributed 30 per cent of total domestic capital investment, reflecting growing confidence in the country's commercial and income-generating real estate assets. Although the share of foreign investment in total activity declined, total investment increased by 18 percent by 2024. US-based investors increased their investments by $1 billion to $2.6 billion this year, reflecting their interest in core assets. Equity investments dominated the market, accounting for 83 percent of total institutional investments.
According to the report, the office sector regained its dominance by capturing 58 per cent of institutional investments, up from 28 per cent in 2024, while the housing sector witnessed a slight decline. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, said 2025 was a year of significant change in India's real estate investment outlook, with office properties attracting $6 billion through strategic investments, Which is more than double compared to last year.
Two-thirds of these investments were concentrated in major core assets. Emerging asset classes such as data centres, student housing, life sciences and health services witnessed growth. Geographically, Bengaluru led the way with 29 per cent of total investments, followed by Mumbai-MMR, while tier-II cities saw investments of $175 million.
