Private equity investment inflows into the Indian real estate sector reached USD 3.2 billion (INR 306 billion) in H1 2026, registering a 33% YoY increase. In Q2 2026 alone, inflows stood at USD 2.0 billion (INR 190 billion), marking a 25% increase over the same period last year, according to the latest findings by Savills India, a global real estate consulting firm.
Note: Private equity institutional investments include equity deals executed through private route, structured debt deals by AIFs and NCD issuances; and exclude plain debt deals executed via fund raises, QIPs, public market deals and platform formations.
In Q2 2026, investments in Data Centres led with a 38% share of total inflows, bucking the trend of office-led investments. The office segment followed with a 30% share, while residential held the third spot at 16%. Looking at H1 2026 overall, however, office remained the leading segment with a 34% share of equity inflows. Investors also diversified into hospitality, which garnered an 8% share, and student housing/co-living, which captured a 3% share, during H1 2026.
The data further indicates that domestic capital drove the majority of PE inflows in H1 2026, accounting for 51% of the share. Capital was deployed across a broad spectrum of asset classes, including alternative segments, but office remained the top choice, capturing 68% of domestic investments, largely concentrated across India’s tier I cities. Foreign-based investors accounted for the remaining 49% of investments. Notably, 69% of this 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. While office remains a core allocation for investors, the period's standout was the sharp rise in Data Centre investments. This, alongside 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. We expect this momentum to sustain through the coming quarters, as investors deepen their conviction in India's long-term, opportunity-rich real estate landscape” said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.
The 33% year-on-year increase in private equity investments during H1 2026 highlights continued confidence in India's real estate market and its long-term growth potential. While office assets remain a preferred investment destination, the strong momentum in data centre investments reflects the increasing demand for digital infrastructure. At the same time, growing allocations to hospitality, healthcare, and student housing/co-living indicate that investors are broadening their portfolios beyond traditional asset classes. Supported by a balanced mix of domestic and foreign capital, the sector is expected to maintain investment momentum as occupier demand, digital transformation, and infrastructure development continue to create new opportunities across real estate segments.
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