Private equity (PE) investment in Indian real estate stood at USD 1.3 billion in Q3 2026, excluding USD 167 million in asset acquisitions by REITs and InvITs, according to Savills India. The investment volume declined 33 per cent quarter-on-quarter, amid geopolitical and macroeconomic uncertainties. However, inflows for January-September 2026 rose 16 per cent year-on-year to USD 4.5 billion.

Hospitality emerged as the largest recipient of PE investment during the quarter, accounting for 26 per cent of total inflows. Industrial and logistics assets followed with a 22 per cent share, supported by demand from e-commerce, manufacturing and supply-chain expansion. Residential real estate accounted for 15 per cent of investments.

Office and data centre assets, which had attracted significant PE interest in previous quarters, accounted for 14 per cent and 8 per cent of Q3 inflows, respectively. The hospitality sector's lead was supported by rising consumption and continued investor interest, the report said.

Among the key transactions during the quarter, Canada Pension Plan Investment Board (CPPIB) invested USD 314 million in Prestige Hospitality Ventures. Logicap invested USD 208 million in warehouses across Chennai, Kolkata and Bhiwandi, near Mumbai, while Fidelity Investments invested USD 194 million in Lodha Developers.

“Private equity investment in Indian real estate has remained resilient in 2026, with YTD inflows reaching USD 4.5 billion, despite a more cautious global investment environment. The growing participation of domestic investors is particularly encouraging and reflects the increasing depth of India’s real estate market,” said Sumeet Bhatia, Managing Director, Research and Consulting, Savills India.

He added that investor interest in hospitality and industrial and logistics assets reflected a broadening opportunity set, while capital was likely to remain selective and favour segments with strong growth prospects.

Savills India’s PE investment data includes equity deals executed through private routes, structured debt deals by alternative investment funds and non-convertible debenture issuances. It excludes plain debt deals through fundraises, qualified institutional placements, public market transactions and platform formations.