Indian Real Estate Attracts USD 3.2 Billion In Private Equity Investments For First Half Of 2026: Savills India
New Delhi, July 13, 2026: Private equity investment inflows into the Indian real estate sector reached USD 3.2 billion (Rs 306 billion) during the first half of 2026, marking a significant 33 percent year-on-year increase from the USD 2.4 billion recorded in the same period last year.
According to the latest research from global real estate consulting firm Savills India, the momentum was heavily driven by a strong second quarter, which saw inflows touch USD 2.0 billion (Rs 190 billion), a 25 percent increase over the corresponding period in 2025. These private equity institutional figures encompass equity deals executed through private routes, structured debt deals by Alternative Investment Funds (AIFs), and Non-Convertible Debenture (NCD) issuances, while intentionally excluding plain debt raises, Qualified Institutional Placements (QIPs), public market deals, and platform formations.
The second quarter of the year witnessed a notable shift in asset preference as data centres overtook the traditionally dominant office sector. Data centres secured the largest chunk of total inflows in the second quarter with a 38 percent share, followed by the office segment at 30 percent and the residential sector at 16 percent. However, looking at the entire first half of 2026, the office sector maintained its position as the overall leader, capturing a 34 percent share of equity inflows. The data also highlighted growing investor diversification into alternative asset classes, with hospitality cornering an 8 percent share and student housing or co-living spaces securing 3 percent of the total investment pie during the first half of the year.
Domestic capital emerged as the primary catalyst for private equity inflows in the first half of 2026, accounting for 51 percent of the total market share. While local investors deployed capital across a diverse range of alternative segments, the office sector remained their preferred choice, receiving 68 percent of all domestic investments, which were heavily concentrated across India’s Tier-I cities. Foreign-based investors accounted for the remaining 49 percent of the total real estate investments. Notably, 69 percent of this international capital originated from institutions in the United States and Canada, with funds primarily directed toward data centres and the hospitality sector.
Commenting on the market dynamics, Sumeet Bhatia, Managing Director, Capital Market Services at Savills India, highlighted the evolving priorities of institutional investors. “PE inflows in the first half of 2026 reaffirm the growing confidence investors have in India’s real estate market. While office remains a core allocation for investors, the period’s standout was the sharp rise in Data Centre investments. This, alongside continued diversification into hospitality, healthcare, and student housing/co-living, reflects a maturing investor base that is increasingly betting on India’s digital and alternative real estate growth story. We expect this momentum to sustain through the coming quarters, as investors deepen their conviction in India’s long-term, opportunity-rich real estate landscape” Bhatia said.
The first half of the year was anchored by several high-value transactions, led predominantly by major global and domestic institutions. The single largest transaction was executed by the Canada Pension Plan Investment Board (CPPIB), which committed a total quantum of USD 742 million to CtrlS Datacenters. This massive investment comprised USD 424 million dedicated to acquiring an 8.2 percent stake in CtrlS, alongside an additional USD 318 million earmarked for a joint venture to develop hyperscale data centres across India. Other prominent institutional deals during the period included a USD 156 million investment by 360 One Asset into CapitaLand, and a USD 154 million infusion by ICICI Prudential Alternatives into the RMZ Group.
