Foreign Investors Drive Strong Comeback in Real Estate Funding
NEW DELH: Private equity (PE) capital deployed into Indian real estate reached USD 6.7 billion (Rs. 59,300 crore) in 2025, marking a 59% year-on-year rise compared to 2024, according to Savills India, a global property consulting firm. The latest data shows that investment activity during the year was largely driven by overseas institutional capital, with foreign investors contributing 76% of total inflows.
Savills clarified that private equity institutional investments include equity deals executed through private routes, structured debt deals by Alternative Investment Funds (AIFs), and NCD issuances, while excluding public market deals, QIPs, plain debt and platform formations.
Office Sector Tops Investments, Data Centres Gain Big Attention
The office segment attracted USD 2.4 billion (Rs. 21,000 crore), accounting for 35.3% of total inflows, supported by stable leasing activity and long-term demand visibility. Data centres and the residential segment followed with 23.2% and 21% share respectively. Notably, data centre investments were entirely driven by foreign capital, while residential real estate saw equal participation from domestic and foreign investors.
Land remained a key asset class, contributing nearly one-fourth of total equity inflows, with over 60% of land-related investments linked to office and data centre developments.
2026 Outlook: Up to USD 7.5 Billion Expected
Savills India expects USD 6.5–7.5 billion in private equity investments in real estate in 2026. The office segment is projected to continue attracting institutional capital, while industrial and logistics assets will gain traction due to supply chain diversification and organised warehousing demand. Residential PE interest is expected to remain steady, driven by premium and luxury housing.
“Private equity investments in Indian real estate have regained momentum… The growing adoption of REITs is improving exit visibility,” said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.
Key 2025 deals include Brookfield’s USD 1 billion investment in Mumbai and Blackstone’s major investments in a Mumbai data centre and South City Mall, Kolkata.
(India CSR)
