Mumbai, Dec 22 Institutional investments in the Indian retail sector are projected to soar to an estimated $10.4 billion across 77 transactions in 2025, marking the second consecutive year of record-breaking performance, a report showed on Monday.
The figure stands as the highest on record and represents a 17 per cent increase from the previous year's exceptional performance of $8.9 billion, according to the JLL report.
Beyond immediate transactions, 2025 witnessed significant platform commitments totalling $11.43 billion, designed for gradual deployment over the next 3-7 years.
“For the first time since 2014, domestic institutional investors have captured a commanding 52 per cent market share. Also, the two-fold increase in core asset acquisitions in 2025 demonstrates that investors are not just betting on India's growth story, but are actively building long-term wealth through our stabilised, income-generating properties,” said Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL.
Indian REITs and Infrastructure Investment Trusts (InvITs) have emerged as the primary catalysts behind this transformation, deploying $2.5 billion -- representing 56 per cent of core asset acquisitions.
Indian private equity players have contributed additional momentum, accounting for 30 per cent of total domestic capital deployment.
While foreign institutional investment declined as a percentage of total activity, absolute foreign capital deployment increased 18 per cent year-over-year, demonstrating continued confidence in Indian real estate fundamentals.
Americas-based investors showed particularly robust commitment, increasing their investment from $1.6 billion in 2024 to $2.6 billion in 2025 -- a substantial 63 per cent year-over-year growth.
The office sector has reasserted its dominance in institutional investments, capturing a commanding 58 per cent market share in 2025.
This represents a significant recovery from 2024, when the residential sector led with 45 per cent share, followed by office at 28 per cent.
Bengaluru emerges as a dominant investment destination. The institutional investment landscape demonstrates clear geographic preferences, with Bengaluru capturing 29 per cent of total institutional deployment in 2025, said the report.
Notably, Tier 2 cities received $175 million in deployment, representing 2 per cent of total investments.
"2025 marked a pivotal transformation in India's real estate investment landscape, with office properties reclaiming their position as the institutional capital magnet, attracting $6 billion through strategic investments that more than doubled from the previous year,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
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