Have Real Estate Institutional Capital Flows in India Reached $3.1 Billion in the First Half of 2025?

Mumbai, June 23 (NationPress) Institutional investments in the Indian real estate sector hit $3,068 million ($3.1 billion) across 30 transactions during the first half of 2025, according to a report released on Monday.

The duration of investment transactions is extending due to challenging global economic conditions. However, the report from JLL indicates that the real estate market showcases significant resilience.

This deceleration follows an extraordinary year in 2024, which witnessed investments reaching an all-time high, slightly exceeding the previous record of $8.4 billion established in 2007.

Institutional investors maintain their engagement through public market avenues such as REITs, QIPs, and investments in publicly listed companies. A notable transaction in 2025 features Blackstone's substantial entry into India's residential real estate market, with an investment of about $214 million to acquire nearly 66 percent of Kolte-Patil Developers.

“India’s real estate landscape continues to be an attractive investment hub, supported by both domestic and international confidence despite the short-term challenges posed by global economic uncertainties in the first half of 2025,” stated Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL.

A robust pipeline of deals exceeding $1 billion suggests sustained activity ahead. The increased actions from REITs and institutional players underscore the maturity and depth of the Indian real estate investment environment.

“The real estate market has consistently shown its durability, with annual investments exceeding the $5 billion mark over the past five years. We project that capital flows for the calendar year 2025 will align with these established standards,” Pillai emphasized.

Despite foreign institutional capital maintaining its dominance, domestic institutional involvement has surged significantly since 2023, now holding a 32 percent market share in the first half of 2025.

Foreign investors continue to lead, accounting for a 68 percent share of the investments.

This growing confidence among foreign investors is attributed to government reforms aimed at improving market transparency and accountability. These complementary investment trends indicate a maturing Indian real estate market with increasing institutional appeal, as noted in the report.

“The residential sector leads slightly with a 38 percent share of the total capital flow, marking a significant transition from the historical preference for the office sector. Within residential investments, equity strategies dominate, constituting 58 percent of capital flows in the first half of 2025, while debt instruments account for 42 percent, continuing the equity-focused strategy that gained traction in 2024,” explained Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.