Office Sector Leads India Real Estate PE Deals in 2025 with USD 2.4 Billion I Overseas institutional capital led activity, contributing 76% of total inflows.
✔ The office segment attracted the highest capital at USD 2.4 billion (35.3%), supported by stable leasing and long-term demand visibility.
✔ Data centres (23.2%) and residential (21%) emerged as the next major investment destinations — with data centre investments entirely foreign-led.
✔ Land remained a key asset class, accounting for nearly one-fourth of total equity inflows, with more than 60% aligned to office and data centre developments.
✔ Other categories such as industrial & logistics, retail, hospitality, co-living and student housing also saw selective investor participation.
NEW DELHI: Private equity capital deployed into Indian real estate reached USD 6.7 billion (INR 593 billion) in 2025, when reckoning only equity deals executed through private route, structured debt deals by Alternative Investment Funds (AIFs) and NCD issuances. This denotes a 59% YOY rise over 2024 investments inflows. Investment activity during the year was largely led by overseas institutional capital, with foreign investors contributing 76% of total inflows, highlighting their continued dominance in the market, according to the latest data by Savills India, a global property consulting firm.
| Note: Private equity institutional investments include equity deals executed through private route, exclude plain debt deals executed via fund raises, QIPs, public market deals and platform formations. |
Private equity investments into Indian real estate have returned to pre-pandemic levels. This recovery a gradual strengthening of market fundamentals following the post-pandemic adjustment period. Over the past few years, improved regulatory transparency under RERA, balance sheet consolidation among developers, and a clearer focus on asset-level performance have enhanced investor confidence.
Source: RCA and Savills India Research
Data shows that office segment attracted USD 2.4 billion (INR 210 billion), highest inflows accounting for 35.3% of total investment inflows, supported by stable leasing activity and long-term demand visibility. Data centres and the residential sector followed, accounting for 23.2% and 21% of total investments, respectively. While investments in data centres were entirely driven by foreign capital, the residential segment witnessed equal participation from domestic and foreign investors. Land continued to remain a key asset class, accounting for nearly one-fourth of total equity inflows. Over 60% of land-related investments were aligned towards office and data centres developments.
| Sectoral Split of India PERE Investments 2025 | |
| Office | 35.3% |
| Data Centres | 23.2% |
| Residential | 21% |
| Industrial and Logistics | 9% |
| Retail | 6% |
| Hospitality | 5% |
| Source: Savills India ResearchCo-living & Student Housing | 0.5% |
| Source: Savills India Research | |
Savills India expects USD 6.5 billion – USD 7.5 billion of private equity investments in real estate in 2026. The office segment is expected to continue attracting institutional capital in core markets. Industrial and logistics assets are anticipated to remain a key focus area, driven by supply chain diversification, manufacturing-led demand, and increasing preference for organised warehousing. Data centres are expected to witness sustained investor interest, supported by rising digital adoption, cloud expansion, and long-term capacity requirements. Residential real estate is also expected to see steady private equity participation, led by luxury and premium housing. Alternative asset classes such as student housing, co-living, senior living, and life sciences are expected to gradually gain traction, though from a relatively small base.
“Private equity investments in Indian real estate have regained momentum, supported by stable economic growth and improving asset-level fundamentals. Capital deployment has increasingly focused across office, industrial and logistics, and data centres, reflecting a preference for income-generating assets. The residential segment has also gained traction, driven by sustained end-user demand, particularly in the premium and luxury segments. Looking ahead, private equity activity is expected to remain steady, with foreign institutional capital continuing to anchor investments. The growing adoption of REITs in India is reshaping the real estate investment landscape by improving exit visibility and reinforcing institutional participation across asset classes.” said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.
| Key Transactions – India |
| Investor | Investee/Asset | Investment quantum (USD million) |
| Brookfield Asset Management | GCC on a 6-acre land parcel in Mumbai | 1,000 |
| Blackstone | 60 megawatt (MW) Data Centre in Mumbai | 566 |
| Blackstone | South City Mall, Kolkata | 378 |
