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Institutional investments in Indian real estate dropped by 37% to USD 3.06 billion in the first half of 2025, largely due to global economic uncertainty and geopolitical instability, according to JLL. Foreign investors made up 68% of the total inflows, while domestic investors contributed 32%. Despite the dip, JLL highlighted the sector's resilience and noted continued investor participation via REITs, QIPs, and listed entities. The housing segment attracted the highest share at 38%. A pipeline of deals exceeding USD 1 billion indicates potential recovery in the coming months.
Institutional investments in Indian real estate saw a sharp decline of 37% during the first half of 2025, falling to USD 3.06 billion from USD 4.89 billion recorded during the same period last year. This drop has been attributed to prevailing global economic challenges and political uncertainties, as revealed by real estate consultancy JLL India. Advertisement
Foreign investors accounted for the majority of this investment activity, contributing 68% of the total institutional inflows, while domestic investors made up the remaining 32%. JLL noted that global economic volatility has led to elongated timelines for closing investment deals, delaying capital deployment across major real estate segments.
Despite this, institutional investors have continued to engage with India's real estate sector through public market channels such as Real Estate Investment Trusts (REITs), Qualified Institutional Placements (QIPs), and investments in listed companies. This signals continued confidence in the long-term growth potential of the Indian property market.
Lata Pillai, Senior Managing Director and Head of Capital Markets at JLL India, observed that India continues to hold strong appeal for investors, both local and international. She mentioned that while the first half of 2025 faced temporary hurdles due to global uncertainties, investor confidence remains intact. Pillai pointed to a robust transaction pipeline valued at over USD 1 billion, indicating sustained investor interest and upcoming activity in the market.
Over the past five years, Indian real estate has consistently attracted annual institutional investments exceeding USD 5 billion, underlining the sector's strength and stability. JLL expects the capital flows in 2025 to align with this multi-year trend, assuming macroeconomic factors stabilise in the latter half of the year.
According to JLL's breakdown of investments by segment, the residential or housing sector commanded the highest institutional interest, accounting for 38% of the total inflows during the first six months of 2025.
Source: PTI
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