Private equity investments in India’s real estate sector reached $3.5 billion in 2025, led by office assets which accounted for 58% of the total. Residential, warehousing, and retail also saw notable inflows, driven by stable income strategies and cautious, selective deal-making..
India’s real estate sector attracted $3.5 billion in private equity investments in 2025, with office assets leading the inflow and residential, warehousing, and retail segments also seeing significant capital deployment. The trend reflects strong investor confidence in stable income-generating properties, even as overall investment volumes moderated compared to previous years.
Private equity investments in India’s real estate sector stood at approximately $3.5 billion in 2025, according to a report by Knight Frank India. The office segment remained the top destination for capital, capturing 58% of the total inflows, amounting to $2 billion. This reflects robust investor confidence in the sector’s scale, rental stability, and institutional demand.
Residential real estate emerged as the second-largest recipient, accounting for 17% of private equity investments. Investors increasingly preferred structured and credit-led deals, showing a cautious approach and favoring income-focused strategies over large-scale risk capital.
Warehousing attracted 15% of total investments, with demand for logistics assets remaining strong due to e-commerce and supply chain growth. However, limited availability of stabilized institutional assets and a conservative approach towards new developments restricted volumes.
Retail real estate saw relatively low activity, making up 11% of total investments, largely driven by a single large transaction. Investors focused on high-quality retail assets with strong operating performance and clear exit prospects.
Key Highlights
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Office real estate dominated, attracting $2 billion or 58% of total private equity inflows
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Residential segment received 17% of investments, with a shift toward structured, credit-led deals
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Warehousing sector secured 15% of investments, supported by e-commerce growth
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Retail real estate saw muted activity, accounting for 11% of inflows, driven by a single large transaction
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Investors favored income-focused, stable assets and remained selective and cautious
Source: Knight Frank India, IANS Live.
Residential real estate emerged as the second-largest recipient, accounting for 17% of private equity investments. Investors increasingly preferred structured and credit-led deals, showing a cautious approach and favoring income-focused strategies over large-scale risk capital.
Warehousing attracted 15% of total investments, with demand for logistics assets remaining strong due to e-commerce and supply chain growth. However, limited availability of stabilized institutional assets and a conservative approach towards new developments restricted volumes.
Retail real estate saw relatively low activity, making up 11% of total investments, largely driven by a single large transaction. Investors focused on high-quality retail assets with strong operating performance and clear exit prospects.
### Key Highlights
- Office real estate dominated, attracting $2 billion or 58% of total private equity inflows
- Residential segment received 17% of investments, with a shift toward structured, credit-led deals
- Warehousing sector secured 15% of investments, supported by e-commerce growth
- Retail real estate saw muted activity, accounting for 11% of inflows, driven by a single large transaction
- Investors favored income-focused, stable assets and remained selective and cautious
Source: Knight Frank India, IANS
