Private equity investments in Indian real estate jump 38% to $2.4 bn in H1 2025

The report also highlighted how commercial office assets continued to lead the pack in Q2 2025, accounting for around 31% of total investment volume.

Private equity investment inflows into the Indian real estate sector reached $2.4 billion (₹20,300 crore) in the first half of the calendar year 2025 (H1), which is a 38 per cent year-on-year increase, according to the latest report by real estate consulting firm Savills India. In Q2 2025 alone, inflows stood at $1.6 billion (₹13,900 crore), doubling from the previous quarter.

“While investments in traditional sectors like commercial offices remain integral, there is a clear strategic shift towards portfolio diversification. Segments such as retail, hospitality, and even emerging asset classes like student housing are gaining investors’ attention. This broadening focus reflects the maturity and resilience of the Indian market despite global headwinds. We expect this trend to strengthen further in the coming quarters, as investors continue to seek long-term value in India’s opportunity-rich real estate sector,” said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.

The report also highlighted how commercial office assets continued to lead the pack in Q2 2025, accounting for around 31 per cent of total investment volume. There was also investor interest in alternative real estate segments such as hospitality and student housing, which secured 15 per cent and 1 per cent of quarterly investment share, respectively.

Land transactions accounted for a significant share of 40 per cent in overall private equity investments in H1 2025, compared to 13 per cent in the full year of 2024 and 26 per cent in 2023. In terms of cities, Mumbai remained high on the radar of investors, garnering about 70 per cent of land investments in H1 2025.

Foreign investors continued to dominate PE inflows during H1 2025, contributing a substantial 76 per cent of the total investment volume.

Blackstone’s $378 million investment in South City Mall, Kolkata, marked the largest retail-focused deal of the quarter. Sumitomo and Brookfield invested $295 million and $151 million, respectively, in MMRDA assets, reinforcing global investor confidence in Mumbai’s infrastructure-led growth. The report noted that these top three deals signal a balanced mix of interest across retail, land and urban development segments.

(With inputs from businessline intern Nethra Sailesh)