Office assets lead India real estate inflows as economy expands

The office sector attracted US$2.4billion in 2025.

India’s real estate investment market rebounded strongly in 2025, underpinned by robust economic growth and macroeconomic stability, according to Savills.

Savills said India remained one of the most resilient large economies globally, with GDP expanding by 7.8% in Q1 FY26 and accelerating to 8.2% in Q2 FY26. The country’s economic size reached an estimated US$4.18 trillion, making it the world’s fourth-largest economy.

Inflation eased during the year, enabling the Reserve Bank of India to implement calibrated policy easing, with the repo rate cut by 125 basis points to 5.25% by December 2025. Savills noted that both services and manufacturing sectors remained in expansionary territory, while external balances improved, supporting a stable outlook heading into 2026.

Strong domestic demand helped sustain investor confidence, with private equity inflows into real estate rising 59% year-on-year to US$6.7 billion, returning to pre-pandemic levels. Office assets attracted the largest share at US$2.4 billion, accounting for 35.3% of total inflows, followed by data centres and residential sectors.

Foreign investors dominated activity, contributing 76% of total inflows, equivalent to US$5.1 billion, up 34% from 2024, Savills said.

Land investments accounted for nearly a quarter of total equity inflows, with more than 60% directed toward office and data centre developments. Activity was heavily concentrated in key cities such as Mumbai and Pune, which together accounted for 79% of land investment volumes.

Savills added that both ready and under-construction assets each captured 23% of total inflows, highlighting sustained investor appetite across the full project lifecycle as India enters 2026 with a balanced growth outlook.