PE investment in Indian real estate stands at USD 1.2 billion in Q1 2026: Savills India

Mumbai, April 9, 2026: The Indian real estate sector has kicked off the 2026 fiscal year with a significant surge in capital, recording private equity (PE) investment inflows of USD 1.2 billion (INR 115.7 billion) in the first quarter. According to a newly released report by global real estate consulting firm Savills India, this figure represents a robust 66% year-on-year increase compared to the USD 0.7 billion recorded in Q1 2025, signaling a renewed appetite for Indian property assets despite a complex global economic backdrop.

The office sector continues to be the primary engine of growth, securing 41% of the total investment volume during the quarter. Capital remained heavily concentrated in high-growth hubs, specifically Gurugram and Pune. Notably, the hospitality sector emerged as a major focal point for investors, ranking second by capturing a 17% share of the total quarterly inflows. High-profile deals highlighted this trend, including the Edelweiss Group’s EAAA Alternatives investing USD 218 million into the International Tech Park in Gurugram, and Warburg Pincus committing USD 106 million to Fleur Hotels.

A significant shift in investor profiles was observed this quarter, as domestic players outperformed their international counterparts. Domestic investors dominated equity investments, contributing USD 817 million—a 66% share of total equity inflows. While 63% of this domestic capital was channeled into office spaces, local investors also diversified into residential and mixed-use projects (18%) and alternative asset classes like student housing and co-living (13%).

Sumeet Bhatia, Managing Director, Capital Market Services, Savills India, noted the importance of this shift in the report. “Q1 2026 marks a strong start for India’s real estate sector in terms of equity investments. In a departure from trends observed in recent quarters, domestic investors took the lead in investment activity, as foreign inflows remained cautious amid global uncertainties. Significant inflows into the hospitality sector during the quarter and other emerging asset classes reflect a continued shift towards portfolio diversification. While we remain optimistic about the year ahead, the evolving trajectory of capital inflows will be critical to watch amid a persistently challenging environment,” Bhatia said.