Surge in Foreign-driven Private Equity Fuels Indian Real Estate Revival

Private equity investments in Indian real estate reached USD 6.7 billion in 2025, a 59% increase from the previous year, driven largely by foreign investors. The office, data centers, and residential segments attracted the most capital. This trend is expected to continue into 2026, bolstered by stable economic growth.

Private equity investments in Indian real estate surged by 59% year-on-year to USD 6.7 billion in 2025, reminiscent of pre-pandemic levels, according to Savills India.

The influx of capital, primarily from foreign institutional investors, constituted 76% of total inflows. The office segment was the primary recipient, drawing in USD 2.4 billion due to steady leasing and long-term demand visibility.

With data centers and residential real estate also attracting significant attention, the trend is projected to sustain into 2026, encouraged by regulatory transparency and stable economic growth.

(With inputs from agencies.)