PE investment into India's real estate sector dips 32% to $1.5 billion in Q3 2025

Private equity investment inflows into the Indian real estate sector stood at $1.5 billion during Q3 2025, according to premier professional international property consulting firm Savills India. While this reflects a 32% decline year-on-year from $2.2 billion, overall activity remains resilient, with year-to-date (YTD) inflows reaching $3.9 billion, nearly matching 2024 levels.

During Q3 2025, the office sector retained its leadership, drawing $0.6 billion or 39% of total inflows, followed closely by data centres (38%), underscoring surging demand for AI-driven and cloud-enabled infrastructure. The residential segment accounted for 20%, while co-living, though modest at 1%, emerged as a promising alternate 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 alternative 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.

The key transactions in India include Blackstone's investment into a 60-megawatt (MW) data centre in Mumbai for $566 million; Prime Offices Fund's $311 million investment into One Paramount Office Park in Porur, Chennai; and 360 One's $272 million investment into Bluegrass Business Park, Pune.

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.