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Residential real estate drives 51% of Rs 6,400 cr PE Inflows in Q1 FY25

s. Key Tier I cities like Bengaluru, Mumbai, Pune, and Delhi-NCR led the investment momentum, reflecting strong market confidence.

New technologies are boosting the property market and helping land management in India. As the government pushes for digitisation of land records and entrepreneurs deploy new technologies in the property market, a change is coming.

Sunainaa Chadha NEW DELHI

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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.
 
Here are the three biggest realty transactions 
 
 
Expanding Investible Universe
The investible universe in the Indian real estate sector is expanding with the evolution of REITs. Blackstone and Sattva Developers, the sponsors of Knowledge Realty Trust, filed the draft red herring prospectus with the SEBI on March 6, 2025, which is expected to be listed in June 2025. This REIT has a portfolio that includes 48 million sq. ft. across 30 Grade A office assets in six cities (95% concentrated in Bengaluru, Hyderabad and Mumbai).
   

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First Published: Apr 10 2025 | 12:36 PM IST

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