NEW DELHI: Private equity investments in India’s real estate sector saw a significant surge in 2025, with total capital deployment reaching $6.7 billion (₹593 billion), reflecting a 59% increase from the previous year, as reported by Savills India.
The investment figure encompasses equity investments made through private channels, structured debt deals by alternative investment funds (AIFs), and non-convertible debenture (NCD) issuances.
Foreign investors maintained a dominant presence, responsible for 76% of total private equity inflows. Savills highlights the recovery as being driven by improved regulatory transparency via RERA, developers’ balance sheet consolidation, and a stronger emphasis on asset-level performance.
The office segment captured the largest portion of investments, totaling $2.4 billion, which accounted for 35.3% of total inflows, propelled by consistent leasing activity and a stable long-term demand outlook. Data centers and the residential sector followed closely, attracting 23.2% and 21% shares, respectively. Notably, investments in data centers were solely driven by foreign capital, while residential assets enjoyed participation from both domestic and international investors.
Land investment emerged as a key theme, constituting nearly 25% of total equity inflows for the year, with over 60% of these investments directed towards office and data center developments.
Looking forward, Savills India anticipates that private equity investments in real estate will continue to flourish in 2026, predicting inflows between $6.5 billion and $7.5 billion. The office sector is likely to keep attracting institutional capital in core markets, while industrial and logistics assets are expected to be prioritized due to supply chain diversification and increased manufacturing demands.
According to Savills, the growing adoption of REITs in India is enhancing exit opportunities for investors and fostering stronger institutional engagement across various real estate asset classes.
