Private equity inflows into Indian real estate hits USD1.5b in Q3

Inflows reached nearly USD4 billion in YTD Sep.

Despite global macroeconomic headwinds, strong domestic demand kept investor confidence intact. According to a Savills report, private equity inflows into Indian real estate touched US$1.5 billion (INR131 billion) in Q3/2025.

Cumulatively, YTD (January–September 2025) inflows stood at US$3.9 billion (INR334 billion), broadly in line with inflows recorded during the same period in 2024.

Here’s more from Savills:

In Q3/2025, the commercial office segment continued to lead, capturing 39% of the total inflows. Data centres emerged as the second largest segment with a 38% share as investors increasingly pursued portfolio diversification. The residential segment followed with a 20% share, while the co-living segment, though modest at 1% share, gained attention as a sunrise sector with strong long-term growth potential.

During January–September 2025, land transactions accounted for a substantial 40% of total private equity investments, highlighting investors’ continued appetite for strategic land acquisition in India. Mumbai remained a preferred destination, capturing over 80% of land investments YTD. 62% of land investments came from the US and Canada, while Japanese investors contributed 31%, highlighting strong foreign interest in India’s real estate land market.

Over 62% of private equity investments during Q3/2025 were concentrated in the western region, primarily in Mumbai and Pune. The capital flowed across different asset types, including land, under-construction projects, and ready properties, highlighting investors' strategic focus on both development potential and immediate income-generating opportunities.