Private equity investments in Indian real estate totaled $1.13 billion in the first half of 2026, with office assets driving nearly 89% of the total investments, according to a report by Knight Frank India. The office segment saw a 33% increase in investments year-on-year, with the National Capital Region (NCR) attracting the highest investments of $411 million.
Shishir Baijal, International Partner, Chairman, and Managing Director of Knight Frank India, noted that global borrowing cost increases have impacted capital allocation decisions, emphasizing factors like execution certainty, taxation, liquidity, and realized returns. Despite this, India’s office market remains resilient, supported by GCC expansion, strong occupier demand, and a growing stock of institutional-grade assets.
The report predicts a promising long-term growth story for India, highlighting the need for a competitive investment framework to attract more global capital. NCR emerged as the top destination for private equity investments in the first half of 2026, experiencing a significant 522% year-on-year increase in inflows to $411.1 million from $66 million in the same period in 2025.
Investment activities were concentrated in key markets offering strong occupier demand, quality asset pipelines, and visible returns. Pune followed NCR with $355.9 million in investments, driven by residential transactions and its evolving role as an office and manufacturing hub. Chennai attracted $154.7 million, benefiting from robust industrial, logistics, and commercial real estate fundamentals, while Bengaluru recorded $115.9 million in investments, supported by GCC expansion and its prominence as India’s primary technology and office market.
