Year Ender - PE Investment in Indian Real Estate Rise to $6.7 Billion in 2025

As several brands take a step towards business expansion, Savills India reports a rise in PE investments in the Indian property market in 2025. Institutional capital is the major force driving this growth at Year-on-Year basis.

The 59 percent rise to $6.7 billion accounts for 76 percent of the total inflow. While the office segment leads the chart at $2.4 billion, leasing, long-term demand, data centers, and residential properties follow the demand.

Savills India, an international property consultant, predicts momentum steadiness in 2026 with office spaces leading with inflow between $6.5 billion and $7.5 billion.

“Private equity investments into Indian real estate have returned to pre-pandemic levels. This recovery is 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 amongst developers, and a clearer focus on asset-level performance have enhanced investors confidence” the report said.

Several PE investments in Indian real estate are en route via fundraisers, QIPs, public market deals, and platform formation. However, it lists the non-inclusion of plain debts through the private entry bay.

Office Assets leads Segment Growth in Indian Real Estate in 2025

Savills India reports that, in 2025, office asset absorption holds the largest portion in PE investments in Indian real estate. Data Centers stand second to it as the second largest investment destination with a 23.2 percent share. Following them is a residential sale with 21 per cent. While industrial and logistic assets stand at 4th position with 9 per cent, retail and hospitality at 6% and 5% respectively.

Student living and co-housing stood at a marginal 0.5 per cent of total inflow.

“Private equity investments in Indian real estate have regained momentum, supported by stable economic growth and improving asset-level fundamentals”, Sumeet Bhatia, Managing Director, Capital Market Services, Savills India said. He further stated, income-generational non-liquid assets including office structures, industrial and logistic parks increase capital deployment.  

Plotted Development draws Attentions from Varied Investors

The report also exhibits that land continues to be a key investment option. The asset-class calculates approximately one-fourth of total equity inflow during the year. Over 60 per cent of land-related investments are focused on office and data center developments. It signals investors’ inclination to future-ready, income-generating investment tools.

Several other categories, like industrial, logistic, retail, and hospitality, host segmented investors. Investors remain cautious about a diversified portfolio, along with safe entry and strategic exits.

The Future Roadmap

Evaluating the current trend, Savills India predicts a steady private equity inflow between $6.7 to $7.5 billion. Office assets are likely to grow as investors are attracted to institutional capital, industrial, and logistic parks. These segments are likely to benefit from supply chain diversification and growing demand for warehouses.