Private equity investments in real estate jump 33% in H1

New Delhi: Private equity investment inflows into the Indian real estate sector reached USD 3.2 billion (Rs 306 billion) in H1 2026, registering a 33% YoY increase. In Q2 2026 alone, inflows stood at USD 2 billion (Rs 190 billion), marking a 25% increase over the same period last year, according to

Savills India, a global real estate consulting firm.

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%. 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,” said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India.