Private equity investment in the Indian real estate sector surged to $748 million (approximately Rs 64 billion) during the first quarter of 2025, marking a significant 35 percent increase compared to the same period last year. This data was reported by Savills India, a global real estate consulting firm, highlighting the strong interest from foreign investors in this market, as reported by Zawya.

The report indicated that residential assets accounted for about 51 percent of the total investment volume, demonstrating sustained demand in key metropolitan areas. Bengaluru, Mumbai, Pune, and Delhi-NCR emerged as the primary destinations for this capital, emphasizing the ongoing momentum within India’s Tier I cities.

Savills also noted that the commercial office segment contributed significantly, with a 32 percent share of total investments. The firm pointed out that all inflows in this segment came exclusively from foreign investors, primarily focusing on development assets in Bengaluru and land acquisitions in Mumbai.

Arvind Nandan, Managing Director of Research and Consulting at Savills India, remarked on the positive trend, stating that while 2024 had already shown improvements in private equity inflows, the first quarter of 2025 exhibited a remarkable surge with a 230 percent increase over the previous quarter. He added that the residential segment’s strong performance reflects confidence in its future, and that 53 percent of the foreign funding during this period originated from the Asia-Pacific region, signaling robust interest from Asian investors.

Savills India operates as a group company of Savills Plc, which is headquartered in London and has over 40 000 employees across more than 700 offices worldwide. The firm offers a range of services to occupiers, investors, and developers in real estate, including leasing, advisory, and transaction services, as well as capital markets and research.