Key Takeaways:
- Private equity in Indian real estate reached USD 6.7 billion in 2025, a 59% year-on-year increase.
- Foreign investors drove 76% of inflows, with offices, data centres and residential assets leading demand.
- Savills India forecasts USD 6.5–7.5 billion for 2026, with industrial logistics and data centres remaining key themes.
Private equity in Indian real estate climbed to USD 6.7 billion in 2025, marking a 59% rise on 2024 as overseas institutional capital continued to dominate the market, according to a Savills India report. The total reflects equity deals executed through private routes, structured debt by Alternative Investment Funds and non-convertible debenture issuances.
Private equity in Indian real estate shows strong recovery
Foreign investors accounted for 76% of total inflows, underscoring the enduring appeal of India for global capital. The office segment attracted the largest share, receiving USD 2.4 billion or 35.3% of total investment. Stable leasing activity and clearer long-term demand supported office transactions in core markets.
Data centres and residential real estate were the next largest recipients, taking 23.2% and 21% of investments respectively. Data centre investment was entirely foreign-driven, reflecting international confidence in India’s accelerating digital demand and cloud expansion. Residential deals drew roughly equal participation from domestic and international investors, with an emphasis on luxury and premium housing.
Land continued to be an important asset class, representing almost one quarter of equity inflows. Over 60% of land-related capital was earmarked for office and data centre development, pointing to sustained demand for development-ready sites close to urban hubs.
Savills India expects private equity investment to remain in the USD 6.5 billion to USD 7.5 billion range in 2026. The firm anticipates continued institutional interest in office assets within core cities, while industrial and logistics properties should benefit from supply chain diversification and manufacturing-led demand. Data centres are likely to sustain investor appeal given long-term capacity needs and rising digital adoption.
Alternative asset classes such as student housing, co-living, senior living and life sciences are expected to gather momentum gradually, although they will start from a small base. The growing adoption of REITs in India is also reshaping the investment landscape by improving exit visibility and encouraging institutional participation across a broader set of asset classes.
Sumeet Bhatia, Managing Director of Capital Market Services at Savills India, said private equity activity is expected to remain steady with foreign institutional capital continuing to anchor investments. The recovery to pre-pandemic levels follows several years of market adjustment and reflects improving regulatory transparency, balance sheet consolidation among developers and a clearer focus on asset-level performance.
The 2025 figures point to renewed investor confidence in the Indian real estate sector, driven by macroeconomic stability and policy reforms that have strengthened market fundamentals. Looking ahead, investor appetite is likely to mirror India’s structural economic trends: urbanisation, digitalisation and efforts to expand organised manufacturing and logistics capacity.
For market participants, the message is clear. With strong foreign participation and diversified capital deployment across offices, data centres, residential and logistics, India’s real estate market appears set to attract continued private equity interest in the near term.
