PE Investment in India’s Real Estate Sector Slides 32% to $1.5 Billion in Q3 2025
Private equity investments in Indian real estate reached $3.9 billion in the first nine months of 2025, with data centres and offices leading the charge in Q3.
Real EstatePrivate EquityInvestmentData CentresOfficesReal EstateOct 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.
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, said Sumeet Bhatia, Managing Director, Capital Markets, Savills India.
The key transactions in India 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 PE investment in Indian real estate in Q3 2025?
The total PE investment in Indian real estate in Q3 2025 was $1.5 billion.
Which sectors led the PE investment in Q3 2025?
The office sector and data centres led the PE investment in Q3 2025, with the office sector attracting 39% and data centres 38% 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 2025?
Key transactions include Blackstone's $566 million investment in a data centre in Mumbai, Prime Offices Fund's $311 million investment in One Paramount Office Park in Chennai, and 360 One's $272 million investment in Bluegrass Business Park in Pune.
What is the outlook for PE investment in Indian real estate for the remainder of 2025?
The outlook for PE investment in Indian real estate for the remainder of 2025 is positive, with sustained momentum and continued interest from foreign investors.
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