Private equity investments in Indian realty dip 29% to $3.5b

Private equity investments in India’s real estate moderated in 2025 but sustained investor engagement.

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A general view of a market in New Delhi, India.

While total investment in real estate has been estimated at $3.5 billion in 2025, private equity investment declined by 29 per cent during the year. PE investments in Indian real estate are projected to rise by 28 per cent YoY to approximately $4.4 billion in 2026, according to Knight Frank India’s latest report titled ‘Trends in Private Equity Investments in India: H2 2025’. Office assets emerged as the clear anchor for PE investments, attracting 58 per cent of total inflows in 2025 with US$ 2,001 million. Office investment volumes remained broadly in line with the three-year average, underscoring continued investor conviction.

Knight Frank India’s capital markets report adopts a focused private equity lens, tracking only capital deployed by PE investors across core real estate asset classes. Platform-level investments are included solely for warehousing, while transactions in other segments are recorded only once capital is deployed. The analysis does not include REITs, InvITs, hospitality and data centre transactions, ensuring a clear, comparable view of private equity activity across office, residential, retail and warehousing sector.