Private equity investment in India’s real estate sector rose sharply in 2025, increasing 59% year-on-year to $6.7bn, according to a new report by property consultancy Savills India. The rebound marks a return to investment levels last seen before the Covid-19 pandemic disrupted global capital flows.
The investments include equity deals completed through private routes, structured debt raised by Alternative Investment Funds, and issuances of non-convertible debentures. Savills said overseas institutional investors continued to dominate activity, accounting for 76% of total inflows during the year.
Office properties attracted the largest share of capital, drawing $2.4bn, or just over 35% of total investments. The sector benefited from stable leasing activity, particularly in major business hubs, and growing confidence in long-term demand from technology, global capability centres and professional services firms.
Data centres emerged as another key investment theme, accounting for 23.2% of total inflows. All investments in this segment were driven by foreign capital, reflecting strong global interest in India’s digital infrastructure, rising data consumption and supportive policy measures.
Residential real estate followed closely, securing 21% of overall investments. Unlike data centres, this segment saw balanced participation from both domestic and overseas investors, supported by steady housing demand, improving affordability and better project execution by developers.
Land continued to be an important asset class, accounting for nearly a quarter of total equity inflows. More than 60% of land investments were aligned towards future office and data centre developments, highlighting investor focus on assets linked to commercial and digital growth rather than speculative residential land banking.
Savills India said the broad-based recovery across asset classes reflects renewed confidence in the Indian real estate market, driven by macroeconomic stability, improved transparency and stronger balance sheets among developers. The consultancy added that sustained foreign interest suggests India remains a preferred destination for long-term real estate capital in the Asia-Pacific region.
