Private equity (PE) investments in India’s real estate sector totalled USD 1.5 billion (INR 131 billion) during Q3 2025, according to Savills India, marking a 32% year-on-year decline yet reflecting continued resilience. Cumulative inflows for January–September 2025 stood at USD 3.9 billion (INR 334 billion), nearly on par with 2024 levels.

The office segment led the quarter with 39% of total inflows, followed closely by data centres (38%), signalling strong demand for AI-driven and cloud infrastructure. The residential sector attracted 20%, while co-living (1%) continued to gain traction as an emerging alternative asset class.

“Private equity investment activity in the Indian real estate sector has sustained its strong momentum so far in 2025, underpinned by robust macroeconomic fundamentals. The commercial office and residential segments continue to attract the highest PE inflows, followed by the data centre and retail sectors. The growing traction in alternate asset classes such as co-living, student housing, and hospitality highlights investors’ increasing focus on portfolio diversification and emerging opportunities within India’s rapidly expanding economy. Notably, over 65% of YTD 2025 inflows have been driven by foreign investors, reaffirming their confidence in the resilience and long-term growth potential of the Indian real estate market. We expect this positive investment sentiment to continue” said Sumeet Bhatia, Managing Director, Capital Markets, Savills India.

Key deals reflected strong investor confidence across asset classes. Blackstone’s USD 566 million investment for development of a data centre in Mumbai, Prime Offices Fund’s USD 311 million acquisition in Chennai, and 360 One’s USD 272 million deal in Pune underscore continued global interest in India’s commercial and digital real estate growth.

While institutional investments have moderated since the 2020 peak, 2025 inflows remain broadly stable, reinforcing India’s sustained appeal as a long-term real estate investment destination.