NEW DELHI: Private equity investments in Indian real estate surged 59% year-on-year to reach $6.7 billion in 2025, fueled by high demand in core asset classes and a favorable macroeconomic environment, according to a recent report by Savills India.
Office assets received the largest investment share, totaling $2.4 billion, or over 35% of the total influx, supported by steady leasing activity. The data center and residential segments contributed 23% and 21% respectively, showcasing a growing investor interest in digital infrastructure and housing.
Foreign investors accounted for a substantial 76% of total inflows at $5.1 billion, reflecting continued global confidence in the Indian real estate market.
Land investments constituted nearly a quarter of the total inflow, primarily directed towards office and data center developments. Notably, Mumbai and Pune comprised approximately 79% of such investments.
Investment activity was well-distributed across different asset stages, with both ready and under-construction assets each making up about 23% of total inflows.
Arvind Nandan, Managing Director of Research and Consulting, noted that investment trends were primarily driven by a preference for core and scalable assets like offices, data centers, and residential properties.
Major transactions of the year included Brookfield Asset Management’s $1 billion investment in an office project in Mumbai, along with the acquisition of industrial and logistics parks by CPPIB in key cities.
