New Delhi, Dec 30 (NationPress) The amount of private equity capital invested in Indian real estate surged to $6.7 billion in 2025, marking a remarkable 59 percent increase compared to 2024, according to a report released on Tuesday.

Savills India projected that private equity investments will range between $6.5 billion and $7.5 billion in 2026, driven by ongoing institutional interest in sectors including offices, industrial and logistics, alongside sustained demand for data centres and premium residential properties.

The report highlights that industrial and logistics assets are expected to remain a focal point, propelled by supply chain diversification, demand from manufacturing, and a growing inclination towards organized warehousing.

It was noted that the 2025 figures represent equity transactions carried out through private channels, structured debt arrangements by Alternative Investment Funds, and issuances of non-convertible debentures.

According to the real estate consultancy, foreign institutional capital was predominant, accounting for 76 percent of total inflows.

The firm indicated that private equity investments have returned to pre-pandemic levels, bolstered by improved market fundamentals, regulatory transparency under the Real Estate Regulatory Authority (RERA), balance sheet consolidation among developers, and a focus on asset-level performance that has enhanced investor confidence.

"Private equity institutional investments comprise equity transactions executed through private routes, explicitly excluding plain debt deals raised via fund offerings, QIPs, public market transactions, and platform formations," the report clarified.

“The resurgence of private equity investments in Indian real estate reflects stable economic growth and advancing asset-level fundamentals. The increasing adoption of REITs in India is transforming the real estate investment environment by enhancing exit visibility and reinforcing institutional engagement across various asset classes,” stated Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.

The consultancy's data revealed that the office segment attracted $2.4 billion, representing the largest share at 35.3 percent of total inflows, followed by data centres at 23.2 percent and residential at 21 percent.

In the office segment, inflows were bolstered by stable leasing activity and long-term demand visibility, while investments in data centres were entirely driven by foreign capital, and the residential segment experienced a balanced participation from both domestic and foreign investors. Notably, land investments constituted nearly one-fourth of equity inflows, with over 60 percent of these investments directed towards office and data centre development.