Private Equity Investments in India’s Real Estate Surge 66% to $1.2 Billion in Q1

Private equity investment into India’s real estate sector rose 66 per cent year on year (YoY) to $1.2 billion in Q1 2026, according to a report by Savills India. The report highlights significant growth in the sector, driven primarily by domestic investors.

Office assets accounted for 41 per cent of total investment volume in Q1 2026, with the majority of capital concentrated in Gurugram and Pune. The hospitality sector captured 17 per cent of the real estate sector, reflecting a growing interest in diversified asset classes.

Domestic investors dominated equity inflows, contributing $817 million, or 66 per cent of the quarter's total. This shift towards domestic investment is notable, as it indicates a growing confidence in the Indian market. Around 63 per cent of domestic investments were directed towards the office sector, while the residential sector and alternative asset classes, such as student housing and co-living, accounted for 18 per cent and 13 per cent of total domestic investments, respectively.

Significant inflows into the hospitality sector and other emerging asset classes reflect a continued shift towards portfolio diversification, the report said. “Q1 2026 marks a strong start for India’s real estate sector in terms of equity investments. In a departure from trends observed in recent quarters, domestic investors took the lead in investment activity, as foreign inflows remained cautious amid global uncertainties,” Sumeet Bhatia, Managing Director, Capital Market Services, Savills India, commented.

Sumeet added that the firm remains optimistic about the year ahead, but the evolving trajectory of capital inflows will be critical to watch amid a persistently challenging environment. Activity in India’s private equity market improved in Q1 2026, with total equity investments reaching $3.83 billion, surging 0.9 per cent sequentially and 66.4 per cent year on year, according to a recent report.

Asia Pacific has become the world’s most dynamic office market, with India leading the growth. The broader region is driven by younger, ESG-aligned assets and demand that outpaces the US and Europe. This trend underscores the growing importance of sustainable and innovative real estate solutions in the region.