Private equity investments in the Indian real estate market have surged impressively, reaching $748 million in the first quarter of 2025. This marks a significant 35% increase compared to the same period last year, as reported by Savills India, a leading global real estate consultancy. The data signals robust investor confidence, particularly within the residential sector, which claims a substantial 51% of the total investment volume.

Investment Distribution: Residential and Commercial Insights

The surge in private equity funding primarily benefits major Indian cities like Bengaluru, Mumbai, Pune, and the Delhi-NCR region. These Tier I cities continue to attract investors, showcasing a healthy demand for real estate.

• Residential Assets: Accounted for 51% of total investments, indicating a strong belief in the sector’s future.
• Commercial Office Segment: This category followed closely, capturing 32% of the investment share, exclusively fueled by foreign investors focusing on developmental projects in Bengaluru and land acquisitions in Mumbai.

Noteworthy Growth Trends

Arvind Nandan, Managing Director of Research and Consulting at Savills India, remarked on the remarkable growth trends: "While 2024 saw some recovery in private equity inflows, the first quarter of 2025 has showcased a notable 230% increase from the previous quarter. The residential market’s 51% share further emphasizes the optimism surrounding this sector."

Moreover, Asian investors displayed a keen interest, as evidenced by 53% of foreign funding originating from the Asia-Pacific region during this period.

About Savills India

Savills India operates under the umbrella of Savills Plc, a prestigious property consultancy headquartered in London. With a vast network of over 40,000 professionals across more than 700 offices globally, Savills India provides comprehensive services to various stakeholders in real estate, including occupiers, investors, and developers. Their expertise spans multiple asset classes, ranging from commercial and industrial properties to logistics and residential developments.

In summary, the first quarter of 2025 reflects an exciting and thriving phase for the Indian real estate sector, driven by robust private equity investments and a clear preference for residential and commercial properties in major urban centers. For more insights on investment trends and real estate developments, visit Savills India’s website for expert analysis and guidance.