Institutional Investments in India Real Estate to Hit $10.4 Billion

Institutional investments in India's real estate industry are forecast to reach a historic high of $10.4 billion across 77 deals in 2025. This shows strong investor confidence as it's a 17% increase from 2024 and the second year in a row of record inflows.

With an $11 billion data centre platform by Digital Connexion at the forefront, platform commitments reached $11.43 billion. Driven by REITs and InvITs, domestic investors seized a majority 52% market share for the first time since 2014.

While office assets led investments reflecting a clear bias for stabilised, income-generating properties, Bengaluru emerged as the leading location.

Ankur Jalan, CEO, Golden Growth Fund (GGF), a category-II real estate focused Alternative Investment Fund “Institutional investment crossing the $10 billion mark in 2025 marks a defining moment for the real estate sector. It reflects renewed investor confidence supported by improving macroeconomic stability, evolving demand, and the sector’s ability to deliver steady, risk-adjusted returns.

Institutional capital is increasingly targeting high-quality assets, resilient income streams, and long-term growth opportunities. This milestone also signals a maturing market, where transparency, governance, and sustainability are becoming central to investment decisions. Overall, the scale of investment highlights real estate’s continued relevance as a core asset class in diversified institutional portfolios.”

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Lalit Parihar, Managing Director, Aaiji Group, a Dholera-based real estate firm stated, crossing the USD 10 billion mark in institutional investments in real estate in 2025 is a strong testament to the sector’s resilience and long-term potential. Domestic investors are clearly leading the charge, reflecting growing confidence in India’s real estate fundamentals.

We are also witnessing a notable uptick in the residential segment, driven by rising urbanization and evolving buyer preferences. As developers, this momentum reinforces our commitment to creating high-quality, sustainable, and inclusive housing solutions that meet the aspirations of modern India. The increased institutional participation will further strengthen transparency, governance, and innovation across the sector.