Private equity investment inflows into the Indian real estate sector grew 35 per cent on year to Rs 64 billion ( $748 million) in the first quarter of fiscal 2025, according to the latest data released by Savills India, a global real estate consulting firm.
The quarterly findings highlighted that residential assets led the market, accounting for approximately 51 per cent of the total investment volume. The majority of this capital was directed toward Bengaluru, Mumbai, Pune and Delhi-NCR, underlining the continued momentum and demand in key Tier I cities.
The commercial office segment emerged as the second-highest contributor, securing a 32% share of total investments. This segment saw inflows exclusively from foreign investors, with funds primarily directed toward development assets in Bengaluru and land in Mumbai.
“While 2024 had shown some improvement in PE inflows, Q1 of 2025 has demonstrated a clear surge with 35% YOY growth. Notably, it is also a 230% sequential rise over the previous quarter. The residential segment, attracting 51% of the quarterly pie, underscores strong confidence in the future of this segment of the market. Additionally, the APAC regional inflow accounted for 53% of foreign funding in this period, a prominent indication of Asian investors’ strong interest” said Arvind Nandan, Managing Director, Research & Consulting, Savills India.
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