Private Equity Capital in Indian Real Estate Surges to $6.7 Billion in 2025
Private equity capital deployed into Indian real estate reached USD 6.7 billion (Rs 593 billion) in 2025, when reckoning only equity deals executed through private routes, structured debt deals by Alternative Investment Funds (AIFs), and NCD issuances. This represents a 59% YOY rise over 2024 investment inflows. Investment activity during the year was largely led by overseas institutional capital, with foreign investors contributing 76% of total inflows, highlighting their continued dominance in the market, according to the latest data by Savills India, a global property consulting firm.
Private equity investments into Indian real estate have returned to pre-pandemic levels. This recovery is a result of the gradual strengthening of market fundamentals following the post-pandemic adjustment period. Over the past few years, improved regulatory transparency under RERA, balance sheet consolidation among developers, and a clearer focus on asset-level performance have enhanced investor confidence, the report said.
Data shows that the office segment attracted USD 2.4 billion (Rs 210 billion), the highest inflows accounting for 35.3% of total investment inflows, supported by stable leasing activity and long-term demand visibility. Data centres and the residential sector followed, accounting for 23.2% and 21% of total investments, respectively. While investments in data centres were entirely driven by foreign capital, the residential segment witnessed equal participation from domestic and foreign investors.
Land continued to remain a key asset class, accounting for nearly one-fourth of total equity inflows. Over 60% of land-related investments were aligned towards office and data centres developments.
Savills India expects USD 6.5 billion – USD 7.5 billion of private equity investments in real estate in 2026. The office segment is expected to continue attracting institutional capital in core markets. Industrial and logistics assets are anticipated to remain a key focus area, driven by supply chain diversification, manufacturing-led demand, and increasing preference for organised warehousing.
Data centres are expected to witness sustained investor interest, supported by rising digital adoption, cloud expansion, and long-term capacity requirements. Residential real estate is also expected to see steady private equity participation, led by luxury and premium housing. Alternative asset classes such as student housing, co-living, senior living, and life sciences are expected to gradually gain traction, though from a relatively small base.
Private equity activity is expected to remain steady, with foreign institutional capital continuing to anchor investments. The growing adoption of REITs in India is reshaping the real estate investment landscape by improving exit visibility and reinforcing institutional participation across asset classes, said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.
