Private Equity Investments In Indian Real Estate Up 59 Pc To $6.7 Billion In 2025

(MENAFN- IANS) New Delhi, Dec 30 (IANS) Private equity capital deployed into Indian real estate reached $6.7 billion in 2025, a 59 per cent year‐on‐year rise over 2024, a report said on Tuesday.

Savills India in the report forecasted private equity investment of $6.5 billion–$7.5 billion in 2026, with continued institutional interest in offices, industrial and logistics, and sustained demand for data centres and premium residential.

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, the report said.

The report noted that the 2025 data reflect equity deals executed through private routes, structured debt deals by Alternative Investment Funds and non‐convertible debenture issuances.

The real estate consultancy said that overseas institutional capital led activity, with foreign investors contributing 76 per cent of total inflows.

The firm said that private equity investments have returned to pre‐pandemic levels due to strengthening of market fundamentals as regulatory transparency under Real Estate Regulatory Authority (RERA), balance sheet consolidation among developers and a focus on asset‐level performance bolstered investor confidence.

"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," the report noted.

“Private equity investments in Indian real estate have regained momentum, supported by stable economic growth and improving asset-level fundamentals. 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.

The consultancy data showed the office segment attracted $2.4 billion, the largest share at 35.3 per cent of total inflows, followed by data centres at 23.2 per cent and residential at 21 per cent.

Inflows into the office segment were supported by stable leasing activity and long-term demand visibility, while those in data centres were entirely driven by foreign capital, and the residential segment saw equal domestic and foreign participation. Land accounted for nearly one‐fourth of equity inflows, with over 60 per cent of land investments aligned to office and data centre development.

MENAFN30122025000231011071ID1110538637