Institutional Investment in India's Real Estate Sector Down y-o-y by 37% in the First Half of 2025, Says JLL Report

Institutional investments in India’s real estate sector have witnessed a sharp decline of 37% year-on-year, falling to USD 3.06 billion in the first half of 2025 from USD 4.89 billion in the same period last year, according to data from JLL India.

The downturn is attributed to prevailing global economic challenges and political uncertainties, which have led to longer deal closure timelines for investment transactions. Despite this, the Indian real estate sector remains resilient, bolstered by continued investor confidence.

Foreign investors accounted for a dominant 68% of the total institutional investments during January to June 2025, while domestic investors contributed the remaining 32%.

JLL highlighted that institutional capital continues to flow into the sector via public market instruments, including Real Estate Investment Trusts (REITs), Qualified Institutional Placements (QIPs), and listed entities. “Investment transactions are experiencing extended timelines due to the challenging international economic conditions and political uncertainties,” JLL noted in its market update.

Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL, remarked, “India’s real estate sector remains a compelling investment destination, buoyed by both domestic and international confidence despite global economic uncertainties having presented short-term challenges in the first half of 2025.”

She added that a robust pipeline of deals worth over USD 1 billion signals sustained investor interest. “The real estate market has consistently demonstrated its staying power with annual investments surpassing the USD 5 billion threshold across the previous five years, and we anticipate that capital flows for calendar year 2025 will align with these established benchmarks,” Pillai said.

Among the various asset classes, the residential segment attracted the largest share, accounting for 38% of total institutional investments in the first half of 2025.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations