India Real Estate PE Investments Rise 33 Per Cent To USD 3.2 Bn
Real Estate

India Real Estate PE Investments Rise 33 Per Cent To USD 3.2 Bn

Private equity investments in India's real estate sector rose 33 per cent year-on-year to United States dollar (USD) 3.2 bn in the first half of 2026, reflecting sustained investor confidence, according to a Savills India report. Equity inflows in the April–June quarter stood at USD 2 bn, up 25 per cent from the corresponding period a year earlier. The report indicated strong interest across commercial and alternative asset classes.

Data centres attracted the largest share of investments in the second quarter at 38 per cent, overtaking office assets which accounted for 30 per cent of inflows in the quarter. Residential assets accounted for 16 per cent while on a half-year basis office remained the largest segment with a 34 per cent share of total equity inflows. Hospitality represented 8 per cent and student housing and co-living collectively took 3 per cent.

Domestic investors accounted for 51 per cent of total private equity inflows during the first half of 2026, with office assets representing 68 per cent of their allocations, primarily across Tier-I cities. Foreign investors supplied the remaining 49 per cent of capital, of which 69 per cent originated from the United States and Canada and was largely directed towards data centres and hospitality assets. Savills managing director Sumeet Bhatia said the pattern reflected growing confidence and noted that investments in hospitality, healthcare and student housing and co-living signalled broader diversification of investor preferences.

Among notable transactions during the period, Canada Pension Plan Investment Board invested USD 742 mn in CtrlS Datacenters through a stake acquisition and a joint venture for hyperscale data centre development. Other significant deals included 360 One Asset's USD 156 mn investment in CapitaLand and ICICI Prudential Alternatives' USD 154 mn investment in RMZ Group. The report said these deals illustrated growing allocation to digital infrastructure and visitor-facing sectors. It added that investment momentum was likely to continue as investors strengthened their long-term exposure to the Indian real estate market.

Private equity investments in India's real estate sector rose 33 per cent year-on-year to United States dollar (USD) 3.2 bn in the first half of 2026, reflecting sustained investor confidence, according to a Savills India report. Equity inflows in the April–June quarter stood at USD 2 bn, up 25 per cent from the corresponding period a year earlier. The report indicated strong interest across commercial and alternative asset classes. Data centres attracted the largest share of investments in the second quarter at 38 per cent, overtaking office assets which accounted for 30 per cent of inflows in the quarter. Residential assets accounted for 16 per cent while on a half-year basis office remained the largest segment with a 34 per cent share of total equity inflows. Hospitality represented 8 per cent and student housing and co-living collectively took 3 per cent. Domestic investors accounted for 51 per cent of total private equity inflows during the first half of 2026, with office assets representing 68 per cent of their allocations, primarily across Tier-I cities. Foreign investors supplied the remaining 49 per cent of capital, of which 69 per cent originated from the United States and Canada and was largely directed towards data centres and hospitality assets. Savills managing director Sumeet Bhatia said the pattern reflected growing confidence and noted that investments in hospitality, healthcare and student housing and co-living signalled broader diversification of investor preferences. Among notable transactions during the period, Canada Pension Plan Investment Board invested USD 742 mn in CtrlS Datacenters through a stake acquisition and a joint venture for hyperscale data centre development. Other significant deals included 360 One Asset's USD 156 mn investment in CapitaLand and ICICI Prudential Alternatives' USD 154 mn investment in RMZ Group. The report said these deals illustrated growing allocation to digital infrastructure and visitor-facing sectors. It added that investment momentum was likely to continue as investors strengthened their long-term exposure to the Indian real estate market.

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