Private equity inflows into Indian real estate dropped 32 per cent in the July-September quarter to USD 1.5 billion, compared with USD 2.2 billion during the same period last year. Office assets and data centres accounted for the majority of investments, at 39 per cent and 38 per cent respectively, while residential properties received 20 per cent. From January to September, total inflows reached USD 3.9 billion. Although PE activity has moderated from the 2020 peak of USD 6.6 billion, India continues to attract sustained investor interest, reinforcing its status as a preferred destination for long-term real estate investments.
Private equity investment in India's real estate sector fell by 32 per cent in the July-September quarter, reaching USD 1.5 billion, according to Savills India. In the same period last year, investments had stood at USD 2.2 billion, indicating a notable moderation in activity.
Office assets attracted the largest share of private equity inflows, accounting for USD 0.6 billion or 39 per cent of total investments. Data centres closely followed, capturing 38 per cent of the total inflows, reflecting growing investor interest in technology-driven real estate. The residential segment received 20 per cent of investments, showing relatively lower focus compared with commercial and data-driven assets.
From January to September 2025, cumulative private equity inflows into the sector reached USD 3.9 billion. Historical trends reveal that inflows were USD 4.3 billion in 2024, USD 3.9 billion in 2023, and USD 3.4 billion each in 2022 and 2021. Notably, private equity investments had peaked at USD 6.6 billion during 2020, highlighting the sector's earlier growth momentum.
Savills India noted that although institutional investments have slowed from the peak levels seen in 2020, inflows this year remain broadly stable. The consultancy emphasized that this reflects India's continued appeal as a long-term real estate investment destination, with investors strategically focusing on segments that promise sustained growth and resilience.
Source PTI
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