Indian real estate logs $3.2 billion in private equity investments in Jan-June

New Delhi: Private equity investment inflows into the Indian real estate sector reached $3.2 billion in H1 2026, marking a 33 per cent year-on-year increase, a report said on Monday.

Investment inflows stood at $2 billion in Q2 2026, marking a 25 per cent increase over the same period last year, according to the report from global real estate consulting firm Savills India.

Private equity institutional investments include equity deals executed through private routes, structured debt deals by AIFs and NCD issuances, and exclude plain debt deals executed via fund raises, QIPs, public market deals and platform formations.

Investments in data centres led with a 38 per cent share of total inflows in Q2 2026, bucking the trend of office-led investments.

The office segment followed with a 30 per cent share, while residential held the third spot at 16 per cent.

Overall, office remained the leading segment during the first half of the fiscal year, with a 34 per cent share of equity inflows.

Investors also diversified into hospitality, which garnered an 8 per cent share, and student housing or co-living, which captured a 3 per cent share.

Domestic capital accounted for 51 per cent of PE inflows in H1 2026, the report noted. Capital was deployed across a broad spectrum of asset classes, including alternative segments, but office remained the top choice, capturing 68 per cent of domestic investments, largely concentrated across India’s Tier I cities.

Foreign-based investors accounted for the remaining 49 per cent of investments and 69 per cent of the foreign capital originated from the USA and Canada, directed mainly into data centres and the hospitality segment.

“PE inflows in the first half of 2026 reaffirm the growing confidence investors have in India’s real estate market… Continued diversification into hospitality, healthcare, and student housing/co-living reflects a maturing investor base that is increasingly betting on India’s digital and alternative real estate growth story,” said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.

The firm forecasted the momentum to sustain through the coming quarters as investors deepen their conviction in India’s long-term, opportunity-rich real estate landscape.

IANS