Private equity (PE) investments in India’s real estate sector rose 33 per cent year-on-year to USD 3.2 billion during the first half of 2026, reflecting sustained investor confidence across commercial and alternative asset classes, according to a Savills India report. PE inflows in the April-June quarter stood at USD 2 billion, up 25 per cent from the corresponding period last year.
Data centres attracted the highest share of investments in the second quarter at 38 per cent, overtaking office assets, which accounted for 30 per cent of total inflows. Residential assets followed with a 16 per cent share. However, on a half-year basis, office remained the largest investment segment with a 34 per cent share of total equity inflows. Hospitality accounted for 8 per cent of investments, while student housing and co-living attracted 3 per cent.
Domestic Capital Takes Lead
Domestic investors contributed 51 per cent of total PE inflows during H1 2026, with office assets accounting for 68 per cent of their investments, primarily across Tier-I cities. Foreign investors made up the remaining 49 per cent of total inflows. Of the overseas capital, 69 per cent originated from the United States and Canada, with investments largely directed towards data centres and hospitality assets.
Sumeet Bhatia, Managing Director, Capital Market Services, Savills India, said the investment trend reflected growing confidence in India’s real estate market. He said that while office assets continued to remain a core allocation for investors, the sharp rise in data centre investments highlighted increasing interest in digital infrastructure.
Bhatia added that investments in hospitality, healthcare and student housing/co-living pointed to a broader diversification of investor preferences. He said the firm expects investment momentum to continue in the coming quarters as investors strengthen their long-term exposure to India’s real estate market.
Among the major transactions during the period, Canada Pension Plan Investment Board (CPPIB) invested USD 742 million in CtrlS Datacenters through a stake acquisition and a joint venture for hyperscale data centre development. Other key deals included 360 One Asset’s USD 156 million investment in CapitaLand and ICICI Prudential Alternatives’ USD 154 million investment in RMZ Group.
