India's Real Estate PE Inflows Surge 59% to USD 6.7 Billion in 2025; Office, Data Centres, and Residential Lead

Gurugram, Mar 26: Private equity (PE) investments in Indian real estate rebounded strongly in 2025, rising 59% year-on-year to reach USD 6.7 billion, according to Savills India’s latest analysis from its Asia Pacific Investment Quarterly Q4 2025 report. The recovery reflects strengthening market fundamentals, sustained domestic demand, and India’s continued position as one of the most stable large economies globally.

India’s economic momentum remained robust through 2025, with GDP expanding by 7.8% in Q1 FY26 and accelerating to 8.2% in Q2 FY26, positioning the country as the world’s fourth-largest economy with an estimated size of USD 4.18 trillion. Easing inflation enabled a cumulative 125 basis points reduction in repo rates during the year, further supporting investment sentiment and liquidity conditions.

Private equity inflows were largely concentrated in core asset classes. The office segment led investments with USD 2.4 billion, accounting for 35.3% of total inflows, driven by stable leasing activity and long-term demand visibility. Data centres and residential assets followed, contributing 23.2% and 21% respectively, reflecting growing investor preference for digital infrastructure and premium housing.

Foreign investors continued to dominate capital deployment, contributing 76% of total inflows (USD 5.1 billion), underscoring sustained global confidence in India’s real estate market. Meanwhile, land investments accounted for nearly one-fourth of total equity inflows, with over 60% directed towards office and data centre developments, primarily in Mumbai and Pune which together accounted for 79% of total land investments.

Investment activity also remained balanced across asset lifecycles, with ready and under-construction assets each attracting 23% of total inflows, indicating continued investor appetite across both income-generating and development-stage opportunities.

Private equity investment activity in 2025 reflects a clear preference for core and scalable assets, with office, data centres and residential sectors accounting for a majority of inflows. The continued dominance of foreign capital indicates sustained global confidence in India, while the strong share of land investments – particularly for office and data centre developments – points to a forward pipeline of institutional-grade supply. As India moves into 2026, investment activity is expected to remain steady, supported by stable macroeconomic conditions and policy continuity,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.

Select large transactions during the year included Brookfield Asset Management’s USD 1 billion investment in a GCC-led office development in Mumbai, TPG Rise Climate’s investment in data centre assets, and Canada Pension Plan Investment Board’s acquisition of industrial and logistics parks across major cities.

Looking ahead, India enters 2026 with a balanced growth outlook supported by macroeconomic stability and policy continuity, which are expected to sustain investor confidence and capital deployment. Continued interest in core asset classes such as office, data centres and residential, alongside strong land allocations towards future developments, is likely to support a steady pipeline of institutional-grade supply. With improving liquidity conditions and resilient domestic demand, private equity investment activity is expected to maintain momentum, underpinned by India’s position as one of the most stable large economies globally.