Institutional Investments in Indian Retail Sector to Reach $10.4 Billion by 2025

Institutional investments in the Indian retail sector are expected to reach $10.4 billion in 2025, with 77 transactions projected, marking a record-breaking performance for the second consecutive year, as per a report by JLL. This figure is the highest on record, showing a 17% increase from the previous year’s outstanding performance of $8.9 billion. In addition to immediate transactions, 2025 saw significant platform commitments amounting to $11.43 billion, planned for gradual deployment over the next 3-7 years.
Domestic institutional investors have secured a 52% market share for the first time since 2014. Core asset acquisitions in 2025 doubled, indicating investors’ focus on long-term wealth creation through stable, income-generating properties, according to Lata Pillai, Senior Managing Director and Head of Capital Markets, India, JLL.
Indian REITs and Infrastructure Investment Trusts (InvITs) have played a key role in this growth, contributing $2.5 billion, which represents 56% of core asset acquisitions. Indian private equity players have also been significant, constituting 30% of total domestic capital deployment.
Although foreign institutional investment decreased as a percentage of total activity, actual foreign capital deployment rose by 18% year-over-year, reflecting continued faith in Indian real estate fundamentals. Investors from the Americas notably increased their investment from $1.6 billion in 2024 to $2.6 billion in 2025, marking a substantial 63% growth.
The office sector has regained its dominance in institutional investments, capturing 58% market share in 2025. This marks a significant shift from 2024 when the residential sector led with a 45% share, followed by the office sector at 28%.
Bengaluru has emerged as a prominent investment destination, attracting 29% of total institutional deployment in 2025, as per the report. Tier 2 cities received $175 million in investments, representing 2% of the total investments.
Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, stated that 2025 witnessed a pivotal transformation in India’s real estate investment landscape, with office properties attracting $6 billion through strategic investments, more than doubling from the previous year.