NEW DELHI: Private equity (PE) investments in the Indian real estate sector surged to USD 2.4 billion (₹203 billion) in the first half (H1) of 2025, representing a 38% year-on-year (YoY) increase, according to Savills India.
The pace quickened in the April–June quarter (Q2 2025), with inflows doubling to USD 1.6 billion (₹139 billion). This rise was supported by strong demand for commercial office spaces, hospitality, and alternative segments such as student housing.
“There’s a clear strategic shift towards diversifying portfolios, with investors increasingly eyeing retail, hospitality, and student housing segments. This trend reflects the market’s maturity and resilience,” stated Sumeet Bhatia, Managing Director of Capital Market Services.
Commercial and Alternative Assets Drive Investment
In Q2, commercial office assets made up about 31% of the total investment volume, solidifying their status as the leading asset class. However, there has been a noticeable shift in investor interest towards alternative real estate sectors. Together, hospitality and student housing accounted for 16% of the quarterly investment, with hospitality alone contributing 15%.
Land Gains Traction as a Key Investment
Land transactions soared during H1 2025, making up 40% of overall PE inflows—up from 13% in 2024 and 26% in 2023. Mumbai continued to lead in land deals, capturing nearly 70% of land-based investments in the first half of 2025.
Foreign Investments Remain Predominant
Foreign institutional investors continued to play a dominant role in India’s real estate private equity market, accounting for 76% of total inflows in H1 2025. This trend underscores global confidence in India’s economy and urban infrastructure development.
Major Deals Reflect Diversified Investment Focus
The largest transaction in Q2 2025 featured Blackstone’s USD 378 million investment in South City Mall, Kolkata. Additionally, Sumitomo invested USD 295 million, while Brookfield contributed USD 151 million in MMRDA assets in Mumbai—highlighting alignment with India’s infrastructure-driven growth.
