Private Equity Investments in Indian Real Estate Jump 38% to $2.4 Billion in H1 2025
Private equity (PE) investments in India’s real estate sector saw strong growth in the first half of 2025, reaching $2.4 billion (₹203 billion), marking a 38% year-on-year increase. The momentum picked up notably in the April–June quarter (Q2 2025), where inflows doubled from the previous quarter to $1.6 billion (₹139 billion), driven by growing interest in commercial office spaces, hospitality, and alternative asset classes such as student housing. Shift Towards Diversified Investments Investors are increasingly diversifying beyond traditional office assets. Segments like retail, hospitality, and student housing are attracting significant capital, reflecting the growing maturity and resilience of the Indian real estate market. In Q2, commercial offices remained the largest category, accounting for around 31% of total investments. However, hospitality and student housing jointly made up 16%, with hospitality alone drawing 15% of the quarter’s inflows. Land Deals Surge in Popularity Land emerged as a major focus area, making up 40% of total PE inflows in H1 2025—a sharp rise compared to 13% in all of 2024 and 26% in 2023. Mumbai led the land investment space, attracting nearly 70% of such deals during this period. Foreign Investors Continue to Lead International investors played a dominant role, contributing 76% of the total private equity inflows in H1 2025. This highlights continued global confidence in India's economic growth and real estate potential. Key Deals Indicate Broadening Focus Among the largest transactions was Blackstone’s $378 million investment in South City Mall, Kolkata—marking a major retail-focused deal. Other notable investments included Sumitomo’s $295 million and Brookfield’s $151 million in assets managed by MMRDA in Mumbai, signaling alignment with India’s infrastructure-led urban expansion.
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