Private equity investment in Indian real estate rises 35% to USD 748 million in Q1-2025: Savills report

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, according to Savills.

The commercial office segment emerged as the second-highest contributor, securing a 32 per cent 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 per cent YOY growth. Notably, it is also a 230 per cent sequential rise over the previous quarter. The residential segment, attracting 51 per cent of the quarterly pie, underscores strong confidence in the future of this segment of the market. Additionally, the APAC regional inflow accounted for 53 per cent of foreign funding in this period, a prominent indication of Asian investors' strong interest," said Arvind Nandan, Managing Director, Research and Consulting, Savills India.

Savills is a professional property consulting firm headquartered in London with a network of more than 40,000 people in over 700 offices across the Americas, Europe, Asia Pacific, Africa and the Middle East.

Savills India is a group company of Savills Plc. with full-service offices in Bengaluru, Mumbai, Delhi NCR, Chennai, Pune, Hyderabad and Ahmedabad.

Savills serves Occupiers, Investors, and Developers of real estate with a host of services including leasing, advisory and transactions, project management, capital markets, valuations and research and consulting. These services cover various asset classes such as commercial, industrial, warehouses and logistics, data centres and residential.