India’s real estate sector has once again emerged as a reliable and attractive market for global investors. Driven by economic stability, rapid urbanization, and strong demand for income-generating properties, investment in real estate continues to grow. In 2025, the sector achieved a new milestone in terms of investment.
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Institutional Investment Breaks Records in 2025
According to a recent report, institutional investment in the Indian real estate sector surpassed the $10 billion mark during 2025. A total of 77 major transactions were recorded this year, resulting in investments of approximately $10.4 billion. This marks the second consecutive year of record-high investment in real estate.
Faster Growth Compared to Last Year
The report indicates that the investment in 2025 was approximately 17 percent higher than in 2024. Last year, the real estate sector recorded a total institutional investment of $8.9 billion. Furthermore, an additional investment commitment of approximately $11.43 billion has also been announced, which is expected to enter the Indian real estate market over the next three to seven years.
Strong Return of Domestic Investors
For the first time since 2014, domestic institutional investors have gained a majority share in the market. In 2025, the share of domestic investors reached 52 percent. According to experts, this indicates that Indian investors are now showing confidence in the country’s real estate sector for long-term wealth creation.
REITs and InvITs Emerge as Major Investment Drivers
Indian Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have emerged as key pillars of this investment growth. Approximately $2.5 billion was invested through these instruments, accounting for 56 percent of the main asset acquisitions. Additionally, Indian private equity firms contributed approximately 30 percent to domestic capital investment. Foreign Investors’ Confidence Remains Strong
Although the percentage share of foreign institutional investment in total transactions has decreased slightly, total foreign capital investment has registered an 18 percent year-on-year increase. This indicates that global investors continue to have confidence in India’s robust real estate fundamentals and stable returns.
Surge in US Investor Participation
US-based investors have shown significant interest in Indian real estate in 2025. Their investment increased from $1.6 billion in 2024 to $2.6 billion in 2025, representing a strong year-on-year growth of approximately 63 percent.
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Office Segment Regains Dominance
In 2025, the office sector regained its leading position in institutional investment, accounting for 58 percent of the total investment. This marks a significant shift from 2024, when the residential sector was at the forefront, and the office sector was in second place.