Institutional investment in property mkt likely to decline 37 pc to $3.06 bn in H1 this year: JLL

New Delhi, Jun 23 (PTI) Institutional investments in Indian real estate are estimated to decline 37 per cent to USD 3.06 billion during the first half of this year on global economic uncertainties, according to JLL.

Real estate consultant JLL India data showed that institutional investments in Indian real estate are likely to fall to USD 3.06 billion in the January-June period this year as compared to USD 4.89 billion in the year-ago period.

Foreign investors' share in total institutional investments in Indian real estate is 68 per cent, while domestic players infused 32 per cent during the first half of the 2025 calendar year.

"Investment transactions are experiencing extended timelines due to the challenging international economic conditions and political uncertainties," the consultant pointed out.

Institutional investors continue to participate through public market channels, including Real Estate Investment Trusts (REITs), Qualified Institutional Placements (QIPs) and investments in listed entities, it added.

Lata Pillai, Senior Managing Director and Head of Capital Markets, India at JLL, said, "India's real estate sector remains a compelling investment destination, buoyed by both domestic and international confidence despite global economic uncertainties having presented short-term challenges in the first half of 2025." A robust pipeline of deals exceeding USD 1 billion points to sustained activity ahead, she added.

"The real estate market has consistently demonstrated its staying power with annual investments surpassing the USD 5 billion threshold across the previous five years, and we anticipate that capital flows for calendar year 2025 will align with these established benchmarks," Pillai said.

As per the data, the housing segment got a maximum 38 per cent share of the total institutional investments.

"Persistent global economic and political headwinds appear more entrenched than initially predicted. While stabilisation remains on the horizon, the unclear timeline has extended investment decision cycles, with several capital deployment determinations likely shifting into 2026," the consultant said.

Despite these challenges, JLL observed that India's economic fundamentals demonstrate remarkable resilience, maintaining the real estate sector's appeal for investors seeking exposure to the country's growth trajectory. PTI MJH MJH SHW