Private Equity Investment in Indian Real Estate Drops 32% in Q3 2025
Private equity investment into the Indian real estate sector saw a 32% decline in the July-September 2025 quarter, dropping to USD 1.5 billion, according to Savills India.
Private EquityReal EstateInvestmentSavills IndiaQuarterly ReportReal EstateOct 09, 2025
The inflow stood at USD 2.2 billion in the year-ago period. In a statement on Thursday, real estate consultant Savills India said the private equity (PE) inflows in the office assets stood at USD 0.6 billion, or 39 per cent of total inflows, followed closely by data centres (38 per cent).
The residential segment accounted for 20 per cent of the PE investments. During the January-September period of this calendar year, the PE inflows have touched USD 3.9 billion.
The PE inflow stood at USD 4.3 billion in 2024, USD 3.9 billion in 2023, USD 3.4 billion each in 2022 and 2021. During 2020, the PE investments stood at USD 6.6 billion.
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, the consultant said.
Frequently Asked Questions
What is the current state of private equity investment in Indian real estate?
Private equity investment in Indian real estate has seen a 32% decline in the July-September 2025 quarter, dropping to USD 1.5 billion.
Which sectors received the highest PE investments in Q3 2025?
Office assets received the highest PE investments at USD 0.6 billion, or 39% of total inflows, followed by data centres at 38%. The residential segment accounted for 20% of the investments.
How have PE inflows changed over the years?
PE inflows have fluctuated over the years, with a peak of USD 6.6 billion in 2020. In 2025, the inflows have remained broadly stable at USD 3.9 billion for the January-September period.
What does the decline in PE investment indicate for the Indian real estate market?
The decline in PE investment suggests a moderation in institutional investments since the 2020 peak, but it also indicates that India remains a stable and appealing long-term real estate investment destination.
Who is Savills India and what is their role in the real estate market?
Savills India is a leading real estate consultant that provides insights and reports on the real estate market. They play a crucial role in analyzing investment trends and providing data-driven insights to investors and stakeholders.
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