Indian Real Estate Sees Record $2.4 Billion PE Surge in H1 2025

Unprecedented Growth in Private Equity Investments

In the first half of 2025, India’s real estate sector experienced a remarkable boost in private equity (PE) investments, soaring to $2.4 billion (₹20,300 crore). According to a recent Savills India study, this marks a 38% year-on-year increase, underscoring the sector’s growing appeal and investor confidence.

Q2 Momentum and Investor Confidence

The momentum intensified in Q2 2025, with PE inflows reaching $1.6 billion (₹13,900 crore)—double the previous quarter’s figure. Sumeet Bhatia, Managing Director, Capital Market Services at Savills India, commented, “PE inflows in H1 2025 underscore the growing confidence investors have in India’s dynamic real estate market.”

Shifting Investment Strategies

While commercial office assets continued to dominate, accounting for 31% of Q2’s total investment volume, there was a noticeable shift towards portfolio diversification. Segments such as retail, hospitality, and emerging asset classes like student housing are now gaining significant attention from investors. Land transactions, in particular, surged to 40% of overall PE investments in H1 2025—up from 13% in 2024 and 26% in 2023. Mumbai led the charge, attracting about 70% of all land-related investments.

Foreign Investment and Sectoral Trends

Foreign investors contributed a substantial 76% of total PE inflows in H1 2025, reflecting continued global interest in Indian real estate. Hospitality and student housing captured 15% and 1% of the Q2 investment share, respectively, highlighting evolving investor strategies focused on high-growth potential areas.

Landmark Deals and Infrastructure Focus

Among the standout deals, Blackstone made the largest retail-focused investment of the quarter, putting $378 million into South City Mall, Kolkata. Japanese conglomerate Sumitomo and Brookfield invested $295 million and $151 million, respectively, in MMRDA assets in Mumbai, emphasizing the growing role of infrastructure-led opportunities in attracting foreign capital.

Positive Outlook for the Future

Savills India anticipates that this positive trend will continue in the coming quarters, driven by ongoing portfolio diversification and a focus on long-term value creation within India’s real estate sector. The first half of 2025 has set a new benchmark for ambition, innovation, and global investor confidence.