India's Real Estate PE Inflows Surge 59% to $6.7B in 2025

The report highlighted that India's economic performance remained strong during the year, with GDP growth reaching 7.8 per cent in the first quarter of FY26 and rising further to 8.2 per cent in the second quarter.

This growth helped position India as the world's fourth-largest economy, with an estimated size of $4.18 trillion.

Lower inflation also allowed for a reduction in interest rates, which supported investment activity, as per the report.

Most of the private equity inflows were directed towards core real estate segments. The office sector attracted the highest investment at $2.4 billion, accounting for over one-third of total inflows.

This was followed by data centres and residential assets, which saw growing interest from investors due to rising demand for digital infrastructure and premium housing.

Foreign investors continued to dominate the market, contributing around 76 per cent of total investments, or $5.1 billion.

This reflects continued global confidence in India's real estate sector. Land investments also played a significant role, making up nearly 25 per cent of total inflows.

A large portion of these investments was directed towards office and data centre developments, especially in Mumbai and Pune, which together accounted for the majority share.

The report also noted that investors showed interest in both ready and under-construction projects, with each category attracting nearly equal investment.

This indicates a balanced approach, with investors looking at both income-generating assets and future development opportunities.

Looking ahead, the report said that investment activity is expected to remain steady in 2026, supported by stable economic conditions and consistent policy support.

Continued demand for office spaces, data centres and residential projects, along with ongoing land investments, is likely to ensure a steady supply of high-quality real estate assets in the coming years.

- IANS