Foreign private equity (PE) investors make significant investments in India's real estate, land, and retail sectors, driving a surge in H1.

Private equity (PE) investments in India’s real estate sector skyrocketed to Rs. 20,566 crore (US$ 2.4 billion) in H1 2025, reflecting a 38% year-on-year growth, as reported by Savills India. Only in Q2 2025 were there inflows of Rs. 13,710 crore (US$ 1.6 billion), doubling the numbers from the previous quarter. Commercial office properties topped the list with 31% of total investments, whereas alternative sectors such as hospitality and student housing increased their presence, representing 15% and 1% of quarterly shares, respectively. Land transactions emerged as a key area, accounting for 40% of PE investments in H1 2025, a notable increase from 13% in 2024. Mumbai led in land investments, drawing 70% of the overall share. Foreign investors continued to dominate, accounting for 76% of total PE inflows, highlighting robust global trust in India’s vibrant real estate sector. Significant agreements in Q2 2025 feature Blackstone’s Rs. An investment of 3,239 crore (US$ 378 million) in South City Mall, Kolkata, marks the biggest retail-focused transaction of the quarter. Sumitomo and Brookfield additionally invested Rs. 2,528 crore (USD 295 million) and Rs. 1,294 crore (US$ 151 million) in assets held by the Mumbai Metropolitan Region Development Authority (MMRDA), demonstrating investor confidence in Mumbai's infrastructure-driven expansion. Mr. Sumeet Bhatia, Managing Director of Capital Market Services at Savills India, remarked that the increasing demand for various asset classes such as retail, hospitality, and student housing showcases the maturity and strength of India’s market in the face of global challenges. This trend is likely to intensify as investors pursue lasting value in the nation’s opportunity-laden real estate market.