India's real estate sector reached a milestone in 2025, with institutional investments soaring to USD 10.5 billion across 78 transactions, marking the second consecutive year of record-breaking performance. This consecutive record-setting performance positions India's real estate market as one of the most dynamic and rapidly evolving investment landscapes in the Asia-Pacific region, signaling robust opportunities for continued institutional participation and market expansion.

The investment landscape underwent a pivotal shift in 2025, with domestic institutional investors capturing a commanding 52% market share—the first-time domestic capital has led since 2014. This marks a significant reversal from the 2015-2024 period when foreign institutional investors dominated. While foreign institutional investment declined as a percentage of total activity, absolute foreign capital deployment increased 27% Y-o-Y, demonstrating continued confidence in Indian real estate fundamentals. Also, equity investments continue to represent the predominant capital deployment strategy in institutional investments, commanding a substantial 85% share of total investment volume. 

Beyond immediate transactions, 2025 witnessed significant platform commitments totaling USD 11.4 billion, designed for gradual deployment over the next 3-7 years. The foundation established in 2024-2025 creates a stage for India to emerge as one of the world's most attractive institutional real estate investment markets over the next investment cycle. The institutional investment outlook in the Indian real estate sector has displayed encouraging trends in recent years and is anticipated to maintain its strength in the foreseeable future.