Mumbai, Dec 22 (NationPress) Institutional investments in the Indian retail sector are forecasted to leap to approximately $10.4 billion through 77 transactions in 2025, indicating the second year of consecutive record-setting achievement, according to a report released on Monday.

This amount is the highest ever recorded and signifies a 17 percent increase from the previous year's remarkable total of $8.9 billion, as per the JLL report.

In addition to immediate transactions, 2025 is expected to see substantial platform commitments amounting to $11.43 billion, intended for gradual investment over the next 3-7 years.

For the first time since 2014, domestic institutional investors have acquired a significant 52 percent market share. The twofold increase in core asset acquisitions in 2025 indicates that investors are not merely betting on India’s growth narrative, but are proactively building enduring wealth through stabilised, income-generating properties,” stated Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL.

Indian REITs and Infrastructure Investment Trusts (InvITs) have emerged as key drivers of this shift, deploying $2.5 billion — representing 56 percent of core asset acquisitions.

Indian private equity firms have also played a crucial role, accounting for 30 percent of total domestic capital deployment.

While foreign institutional investment has decreased as a percentage of total activity, absolute foreign capital deployment increased by 18 percent year-over-year, indicating sustained confidence in the fundamentals of Indian real estate.

Investors from the Americas showed particularly strong commitment, raising their investment from $1.6 billion in 2024 to $2.6 billion in 2025 — a remarkable 63 percent year-over-year growth.

The office sector has reaffirmed its dominance in institutional investments, commanding a significant 58 percent market share in 2025.

This marks a notable recovery from 2024, when the residential sector led with a 45 percent share, while office properties held 28 percent.

Bengaluru has emerged as a leading investment hub, with the institutional investment landscape showing clear geographic preferences, as Bengaluru accounted for 29 percent of total institutional investments in 2025, according to the report.

Interestingly, Tier 2 cities received $175 million in investments, making up 2 percent of total investments.

“2025 represents a transformative year in India's real estate investment landscape, with office properties reclaiming their status as the main attraction for institutional capital, drawing $6 billion through strategic investments that more than doubled from the prior year,” remarked Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.