Indian real estate registers $749m worth of private equity investment inflows in Q1

This is a significant 35% increase from the same period a year ago.

According to a Savills report, drawing confidence from government efforts to build a favorable environment, investment sentiment appears to be positive. During Q1/2025, private equity investment inflows into the Indian real estate sector were recorded as US$748 million (INR64 billion), a 35% YoY increase.

“Sequentially, this meant a substantial rise of 2.3 times in Q1/2025, a clear sign of investor confidence in the Indian economy and the sector as well.”

Here’s more from Savills:

The residential segment attracted the highest share of investments during Q1/2025. With US$380 million (INR33 billion), the segment accounted for 51% of total private equity inflows. The attractiveness of this segment can be partly attributed to a couple of factors including better regulation, as well as the growth that it has witnessed recently.

The trend might continue with increasing home loan deployments, moderating interest rates and infrastructure advancements. Investment activity was primarily concentrated in land and development assets in Bengaluru, Mumbai, Pune and the NCR. The commercial office segment followed, securing a 32% share of total investment. This segment witnessed inflows exclusively from foreign investors, with investments focused on development assets in Bengaluru as well as land in Mumbai.