Private equity (PE) investment in India’s real estate sector rose 35% year-on-year to USD 748 million in the first quarter of 2025, driven by strong momentum in the residential segment, global real estate consultancy Savills India said on Thursday.
The Q1 inflows, equivalent to INR 64 billion, also marked a sharp 230% rise over the previous quarter, highlighting renewed investor confidence. Residential assets led the pack, accounting for 51% of the total investments, with capital largely flowing into Bengaluru, Mumbai, Pune, and Delhi-NCR – India’s top Tier I cities.
The commercial office segment was the second-largest contributor, attracting 32% of the total capital. Notably, this category drew interest solely from foreign investors, who focused on development assets in Bengaluru and land acquisitions in Mumbai.
“While 2024 had shown some improvement in PE inflows, Q1 of 2025 has demonstrated a clear surge with 35% YoY growth,” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.
Nandan added that the dominance of the residential segment reflects robust market confidence, while the increasing participation from Asia-Pacific (APAC) investors signals a rising appetite for Indian real estate. APAC accounted for 53% of total foreign inflows during the quarter.
Savills’ quarterly data underscores the sector’s continued resilience, with domestic and international investors showing sustained interest in both residential and commercial asset classes.
