Private Equity Investments in Indian Real Estate Surge to $6.7 Billion in 2025
Private equity investments in Indian real estate saw a 59% surge to USD 6.7 billion in 2025, driven by strong demand in office, data centers, and residential segments.
Real EstatePrivate EquityInvestmentsOffice SpaceData CentersReal EstateJan 2, 2026
The office segment attracted the highest investments at USD 2.4 billion, accounting for 35.3 per cent of total inflows, supported by stable leasing activity and long-term demand visibility. Data centres and residential real estate followed with 23.2 per cent and 21 per cent shares, respectively.
While data centre investments were entirely driven by foreign capital, the residential segment saw equal participation from domestic and overseas investors. Land continued to remain a key asset class, accounting for nearly one-fourth of total equity inflows, with over 60 per cent of land investments aligned towards office and data centre developments.
"Private equity investments in Indian real estate have regained momentum, supported by stable economic growth and improving asset-level fundamentals," said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India, adding that foreign institutional capital is likely to continue anchoring investments going forward.
The year 2026 is expected to witness a new momentum in real estate growth. Private Equity and REITs are anticipated to witness significant growth and play a much bigger role. India's real estate sector will see strengthened growth in 2026 due to sustained demand across housing, commercial, and alternative asset classes.
"In a nutshell, the institutional role in India's real estate is gaining momentum. This will accelerate the transition of real estate into the desired industry status," said Saket Mohta, MD, Merlin Group on the development.
Savills India noted that improved regulatory transparency under RERA, balance sheet consolidation among developers, and a sharper focus on asset-level performance have helped strengthen investor confidence in the sector.
Looking ahead, private equity investments in real estate are expected to remain steady at USD 6.5-7.5 billion in 2026, with office assets in core markets, industrial and logistics parks, and data centres continuing to attract institutional capital.
Frequently Asked Questions
What was the total private equity investment in Indian real estate in 2025?
The total private equity investment in Indian real estate in 2025 was USD 6.7 billion.
What segment attracted the highest investment in 2025?
The office segment attracted the highest investment, with USD 2.4 billion, accounting for 35.3 per cent of total inflows.
What percentage of total investments came from foreign investors?
Foreign investors accounted for 76 per cent of total investments in Indian real estate in 2025.
What are the key factors driving the growth in private equity investments in Indian real estate?
Key factors include stable economic growth, improving asset-level fundamentals, regulatory transparency under RERA, balance sheet consolidation among developers, and a sharper focus on asset-level performance.
What is the outlook for private equity investments in real estate for 2026?
Private equity investments in real estate are expected to remain steady at USD 6.5-7.5 billion in 2026, with office assets in core markets, industrial and logistics parks, and data centres continuing to attract institutional capital.
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