Key Takeaways
- • Private equity investment in Indian real estate reached USD 4.5 billion in January-September 2026, up 16% from the same period of 2025, according to Savills India.
- • Third-quarter (July-September) PE investment was USD 1.3 billion, down 33% from the previous quarter, excluding USD 167 million of asset acquisitions by REITs and InvITs.
- • Hospitality led sector allocations in Q3 with a 26% share, followed by industrial and logistics at 22% and residential at 15%.
- • Savills India's Sumeet Bhatia described PE activity as resilient amid a more cautious global investment backdrop and highlighted growing domestic investor participation.
Summary
Private equity investment in Indian real estate stood at USD 4.5 billion in the first nine months of 2026, 16 per cent higher than in the same period of 2025, according to a report by Savills India. The figures point to sustained capital inflows into the sector despite a more cautious global investment environment.
Investment slowed sharply in the most recent quarter. Deployment in the July-September quarter totalled USD 1.3 billion, down 33 per cent from the preceding quarter. That figure excludes USD 167 million of asset acquisitions by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), which are tracked separately.
By asset class, hospitality was the largest recipient in the third quarter with a 26 per cent share of total investment. Industrial and logistics followed at 22 per cent, recovering after a brief lull. Residential accounted for 15 per cent, office for 14 per cent and data centres for 8 per cent. Savills noted that office and data centre shares were both down from their recent levels.
Sumeet Bhatia, Managing Director, Research and Consulting at Savills India, said PE investment in Indian real estate has remained resilient in 2026. He described the growing participation of domestic investors as particularly encouraging for the market's depth.
Investment slowed sharply in the most recent quarter. Deployment in the July-September quarter totalled USD 1.3 billion, down 33 per cent from the preceding quarter. That figure excludes USD 167 million of asset acquisitions by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), which are tracked separately.
By asset class, hospitality was the largest recipient in the third quarter with a 26 per cent share of total investment. Industrial and logistics followed at 22 per cent, recovering after a brief lull. Residential accounted for 15 per cent, office for 14 per cent and data centres for 8 per cent. Savills noted that office and data centre shares were both down from their recent levels.
Sumeet Bhatia, Managing Director, Research and Consulting at Savills India, said PE investment in Indian real estate has remained resilient in 2026. He described the growing participation of domestic investors as particularly encouraging for the market's depth.
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