Blurb
Indian real estate attracts $3.2 billion private equity investments in H1 2026, rising 33% amid strong investor confidence.
New Delhi
Private equity investments in India’s real estate sector reached $3.2 billion during the first half of 2026, registering a 33 percent year-on-year growth, reflecting rising investor confidence in the country’s property market, according to a report released on Monday.
Global real estate consultancy firm Savills India said private equity institutional inflows stood at $2 billion in the second quarter of 2026, marking a 25 percent increase compared with the same period last year.
The investment figures include equity transactions executed through private routes, structured debt deals by Alternative Investment Funds (AIFs), and non-convertible debenture issuances. The data excludes conventional debt deals, qualified institutional placements, public market transactions and platform formations.
Data centres emerged as the leading investment segment in the second quarter, accounting for 38 per cent of total inflows and reversing the earlier dominance of office-led investments. The office segment contributed 30 per cent, while residential real estate secured a 16 per cent share.
For the first half of the year, office assets remained the preferred investment category, attracting 34 per cent of total equity inflows. Investors also expanded exposure to alternative real estate segments, including hospitality with an 8 per cent share and student housing or co-living spaces with 3 per cent.
Domestic investors contributed 51 per cent of total private equity inflows during H1 2026. The capital was spread across multiple asset classes, although office properties remained the primary focus, accounting for 68 per cent of domestic investments, particularly in major Tier-I cities.
Foreign investors accounted for the remaining 49 per cent of inflows, with the US and Canada contributing nearly 69 per cent of overseas capital. Foreign investments were mainly directed towards data centres and hospitality assets.
Savills India Managing Director Sumeet Bhatia said the strong inflow of private equity capital highlights growing confidence in India’s real estate sector. He added that increasing diversification into hospitality, healthcare and student housing reflects a maturing investment approach focused on digital and alternative real estate opportunities.
The report expects investment momentum to continue in the coming quarters as global and domestic investors strengthen their long-term commitment to India’s expanding real estate market.
