Private equity investment in India’s real estate sector saw a significant 66% year-on-year increase to $1.2 billion in the first quarter of 2026, as per a report by Savills India. Office assets constituted 41% of the total investment volume during this period, with major investments focused in Gurugram and Pune. The hospitality sector also attracted a notable 17% share of investments in the real estate sector.
Domestic investors played a key role in driving equity inflows, contributing a substantial $817 million, which accounted for 66% of the total investments in the quarter. Among domestic investments, around 63% were channeled into the office sector, while the residential sector and alternative asset classes like student housing and co-living received 18% and 13% of the total domestic investments, respectively.
The report highlighted a significant influx of investments into the hospitality sector and emerging asset classes, indicating a growing trend towards portfolio diversification. Sumeet Bhatia, Managing Director of Capital Market Services at Savills India, noted that Q1 2026 showcased a robust beginning for India’s real estate sector in terms of equity investments. He emphasized the shift in investment activity towards domestic investors, with foreign inflows adopting a cautious approach amidst global uncertainties.
According to the report, total equity investments in India’s private equity market surged to $3.83 billion in Q1 2026, marking a 0.9% sequential increase and a substantial 66.4% year-on-year growth. Additionally, recent reports have positioned Asia Pacific as the world’s most dynamic office market, with India leading the growth trajectory in the region driven by younger, ESG-aligned assets and strong demand surpassing that of the US and Europe.
