PE Investors Drive $3.9 Billion into Real Estate in January-September 2025: Savills India

New Delhi, October 10, 2025: Private equity investment inflows into the Indian real estate sector stood at $1.5 billion during Q3 2025, according to Savills India, a global real estate consulting firm. While this reflects a 32% decline year-on-year, overall activity remains resilient, with year-to-date (YTD) inflows reaching $3.9 billion, nearly matching 2024 levels.

During Q3 2025, the office sector retained its leadership, drawing $0.6 billion or 39 per cent of total inflows, followed closely by data centres (38 per cent), underscoring surging demand for AI-driven and cloud-enabled infrastructure. The residential segment accounted for 20 per cent, while co-living, though modest at 1 per cent, emerged as a promising alternate asset class.

“Private equity investment activity in the Indian real estate sector has sustained its strong momentum so far in 2025, underpinned by robust macroeconomic fundamentals. The commercial office and residential segments continue to attract the highest PE inflows, followed by the data centre and retail sectors. The growing traction in alternate asset classes such as co-living, student housing, and hospitality highlights investors’ increasing focus on portfolio diversification and emerging opportunities within India’s rapidly expanding economy. Notably, over 65 per cent of YTD 2025 inflows have been driven by foreign investors, reaffirming their confidence in the resilience and long-term growth potential of the Indian real estate market. We expect this positive investment sentiment to continue,” said Sumeet Bhatia, Managing Director, Capital Markets, Savills India.

Key deals reflected strong investor confidence across asset classes. Blackstone’s $566 million investment for development of a data centre in Mumbai, Prime Offices Fund’s $311 million acquisition in Chennai, and 360 One’s $272 million deal in Pune underscore continued global interest in India’s commercial and digital real estate growth.

While institutional investments have moderated since the 2020 peak, 2025 inflows remain broadly stable, reinforcing India’s sustained appeal as a long-term real estate investment destination.