PE Investment in India's Real Estate Sector Drops 32% to $1.5 Billion in Q3 2025
Despite a 32% year-on-year decline, private equity investment in India's real estate sector remains resilient, with year-to-date inflows reaching $3.9 billion. The office and data center segments continue to lead, while co-living emerges as a promising alternative asset class.
Real EstatePrivate EquityInvestmentData CentersColivingReal Estate NewsOct 09, 2025
During Q3 2025, the office sector retained its leadership, drawing $0.6 billion or 39% of total inflows, followed closely by data centres (38%), underscoring surging demand for AI-driven and cloud-enabled infrastructure. The residential segment accounted for 20%, while co-living, though modest at 1%, emerged as a promising alternate asset class.
Sumeet Bhatia, Managing Director, Capital Markets, Savills India, commented, “Private equity investment activity in the Indian real estate sector has sustained its strong momentum so far in 2025, underpinned by robust macroeconomic fundamentals. The commercial office and residential segments continue to attract the highest PE inflows, followed by the data centre and retail sectors. The growing traction in alternative asset classes such as co-living, student housing, and hospitality highlights investors’ increasing focus on portfolio diversification and emerging opportunities within India’s rapidly expanding economy. Notably, over 65% of YTD 2025 inflows have been driven by foreign investors, reaffirming their confidence in the resilience and long-term growth potential of the Indian real estate market. We expect this positive investment sentiment to continue.”
Key transactions in the sector during Q3 2025 include Blackstone's investment into a 60-megawatt (MW) data centre in Mumbai for $566 million; Prime Offices Fund's $311 million investment into One Paramount Office Park in Porur, Chennai; and 360 One's $272 million investment into Bluegrass Business Park, Pune.
While institutional investments have moderated since the 2020 peak, 2025 inflows remain broadly stable, reinforcing India’s sustained appeal as a long-term real estate investment destination.
Frequently Asked Questions
What was the total private equity investment in the Indian real estate sector in Q3 2025?
The total private equity investment in the Indian real estate sector in Q3 2025 was $1.5 billion.
Which sector led in private equity investment in Q3 2025?
The office sector led in private equity investment in Q3 2025, drawing $0.6 billion or 39% of total inflows.
What percentage of YTD 2025 inflows were driven by foreign investors?
Over 65% of YTD 2025 inflows were driven by foreign investors.
What are some key transactions in the Indian real estate sector in Q3 2025?
Key transactions include Blackstone's $566 million investment in a 60-megawatt data center in Mumbai, Prime Offices Fund's $311 million investment in One Paramount Office Park in Porur, Chennai, and 360 One's $272 million investment in Bluegrass Business Park, Pune.
What is the outlook for private equity investment in the Indian real estate market?
The outlook for private equity investment in the Indian real estate market is positive, with expectations of continued strong momentum and increasing focus on portfolio diversification and emerging opportunities.
Related News Articles
Tier-2 Cities Witness 10-15% Growth in Property Prices, Outperforming Metros
Tier-2 cities in India are rapidly closing the gap with Tier-1 cities, driven by economic diversification, rising consumer demand, and reverse migration patterns.
Boosting India's Real Estate Sector: Expectations from Union Budget 2024-25
Industry experts emphasize the need for enhanced tax incentives, single window clearance, and infrastructure development to drive growth and stability in the real estate sector.
Bajaj Housing Finance Q2 FY25: Profit Rises 21% YoY to Rs 546 Crore, Revenue Up 26%
Earlier in the day, Bajaj Housing shares settled 1.97 percent lower at Rs 136.55.
Trump Towers: A Project Set to Revolutionize the Indian Real Estate Market
As the Indian real estate market continues to evolve, one of the most ambitious projects on the horizon is Trump Towers. Licensed partner in India reveals plans to generate ₹15,000 crore in sales over the next 4-6 years, making it a landmark development i
India's Luxury Housing Market Booms: A ₹279,000 Crore Surge
India's luxury housing market is witnessing a significant surge, driven by affluent buyers who are increasingly seeking exclusivity and high-end living. Key cities like Mumbai, Delhi-NCR, and Bengaluru are leading this trend, with a substantial increase i
10 Lakhs in Bengaluru, Mumbai, and Delhi: What You Can Buy in the Real Estate Market
Discover what 10 lakhs can get you in the real estate markets of Bengaluru, Mumbai, and Delhi, according to a recent report by Knight Frank. Explore the current property trends and investment opportunities in these major Indian cities.