Private Equity Investments in Indian Real Estate Skyrocket 38% to $2.4 Billion in H1 2025
Indian real estate saw a significant surge in private equity investments, reaching $2.4 billion in H1 2025, with a 38% YoY increase. Q2 2025 witnessed a doubling of inflows, driven by commercial office assets, hospitality, and alternative segments like student housing.
Private Equity InvestmentsIndian Real EstateReal Estate GrowthInvestment TrendsSavills IndiaReal EstateJul 13, 2025
The momentum accelerated in the April–June quarter (Q2 2025), with investment inflows doubling sequentially to USD 1.6 billion (₹139 billion), buoyed by strong investor appetite for commercial office assets, hospitality, and alternative segments like student housing.
There is a clear strategic shift towards portfolio diversification. Segments such as retail, hospitality, and student housing are increasingly drawing investor attention, reflecting the market’s maturity and resilience, said Sumeet Bhatia, managing director (Capital Market Services), of the company.
Commercial office assets accounted for approximately 31% of the total investment volume in Q2, maintaining their position as the dominant asset class. However, investor sentiment showed a marked shift toward high-growth potential in alternative real estate segments. Hospitality and student housing collectively captured 16% of the quarterly investment share, with hospitality alone contributing 15%.
Land transactions surged during H1 2025, contributing 40% of total PE inflows—significantly higher than 13% in full-year 2024 and 26% in 2023. Mumbai remained the top destination for land deals, commanding nearly 70% of land-related investments during the first half of 2025.
Foreign institutional investors continued to dominate India’s private equity landscape in real estate, accounting for 76% of total inflows during H1 2025. This reaffirms global confidence in India’s economic and urban infrastructure trajectory.
The largest deal in Q2 2025 was Blackstone’s USD 378 million investment in South City Mall, Kolkata—a major retail-focused transaction. Additionally, Sumitomo invested USD 295 million and Brookfield pumped in USD 151 million into MMRDA assets in Mumbai, underscoring a strategic alignment with India’s infrastructure-driven urban growth.
Frequently Asked Questions
What is the total amount of private equity investments in Indian real estate in H1 2025?
The total amount of private equity investments in Indian real estate in H1 2025 was USD 2.4 billion (₹203 billion).
How much did investment inflows increase in Q2 2025 compared to the previous quarter?
Investment inflows in Q2 2025 doubled compared to the previous quarter, reaching USD 1.6 billion (₹139 billion).
What segments of the real estate market are showing increased investor attention?
Segments such as retail, hospitality, and student housing are showing increased investor attention, reflecting the market’s maturity and resilience.
What percentage of total PE inflows did land transactions contribute in H1 2025?
Land transactions contributed 40% of total PE inflows in H1 2025, a significant increase from previous years.
What was the largest deal in Q2 2025 and who was involved?
The largest deal in Q2 2025 was Blackstone’s USD 378 million investment in South City Mall, Kolkata, a major retail-focused transaction.
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