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Time of India
6 days ago
- Business
- Time of India
Private equity investments in Indian real estate surge 38% to $2.4 billion in H1 2025: Report
NEW DELHI: Private equity (PE) investments in the Indian real estate sector rose sharply to USD 2.4 billion (₹203 billion) during the first half (H1) of 2025, marking a 38% year-on-year (YoY) growth, according to a report by Savills India . The momentum accelerated in the April–June quarter (Q2 2025), with investment inflows doubling sequentially to USD 1.6 billion (₹139 billion), buoyed by strong investor appetite for commercial office assets, hospitality, and alternative segments like student housing. "There is a clear strategic shift towards portfolio diversification. Segments such as retail, hospitality, and student housing are increasingly drawing investor attention, reflecting the market's maturity and resilience," said Sumeet Bhatia, managing director (Capital Market Services), of the company. Commercial and alternative assets lead investment activity Commercial office assets accounted for approximately 31% of the total investment volume in Q2, maintaining their position as the dominant asset class. However, investor sentiment showed a marked shift toward high-growth potential in alternative real estate segments. Hospitality and student housing collectively captured 16% of the quarterly investment share, with hospitality alone contributing 15%. Land emerges as a key investment avenue Land transactions surged during H1 2025, contributing 40% of total PE inflows—significantly higher than 13% in full-year 2024 and 26% in 2023. Mumbai remained the top destination for land deals, commanding nearly 70% of land-related investments during the first half of 2025. Foreign capital remains dominant Foreign institutional investors continued to dominate India's private equity landscape in real estate, accounting for 76% of total inflows during H1 2025. This reaffirms global confidence in India's economic and urban infrastructure trajectory. Top deals highlight diversified investor focus The largest deal in Q2 2025 was Blackstone's USD 378 million investment in South City Mall, Kolkata—a major retail-focused transaction. Additionally, Sumitomo invested USD 295 million and Brookfield pumped in USD 151 million into MMRDA assets in Mumbai, underscoring a strategic alignment with India's infrastructure-driven urban growth.
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Business Standard
10-07-2025
- Business
- Business Standard
Foreign PE investors bet big on India's realty; land, retail drive H1 surge
Private equity investment inflows into the Indian real estate sector reached $2.4 billion (Rs 203 billion) in the first half of 2025, marking a 38% year-on-year increase, according to the latest report by Savills India, a global real estate consulting firm. In Q2 2025 alone, inflows stood at $1.6 billion (Rs 139 billion), doubling from the previous quarter. It is important to note that the figures presented pertain solely to transactions executed via the private equity route. Investment volumes through other funding modes have exhibited significant variability over time, contributing to broader fluctua 'PE inflows in H1 2025 underscore the growing confidence investors have in India's dynamic real estate market. While investments in traditional sectors like commercial offices remain integral, there is a clear strategic shift towards portfolio diversification. Segments such as retail, hospitality, and even emerging asset classes like student housing are gaining investors' attention. This broadening focus reflects the maturity and resilience of the Indian market despite global headwinds. We expect this trend to strengthen further in the coming quarters, as investors continue to seek long term value in India's opportunity-rich real estate sector' said Sumeet Bhatia, Managing Director, Capital Market Services, Savills India. Some other key points in the report include: - Commercial office assets continued to lead the pack in Q2 2025, accounting for around 31% of total investment volume Investors also demonstrated a strategic shift in Q2 by recalibrating their portfolio to bet on high-growth potential in alternative real estate segments. Hospitality and student housing emerged as promising avenues, securing 15% and 1% of quarterly investment share, respectively Land transactions accounted for a significant share of 40% in overall private equity investments in H1 2025, compared to 13% in the full year of 2024 and 26% in 2023 Mumbai remains high on the radar of investors, garnering about 70% of land investments in H1 2025 Foreign investors continued to dominate PE inflows during H1 2025, contributing a substantial 76% of the total investment volume Blackstone's $378 million investment in South City Mall, Kolkata, marked the largest retail-focused deal of the quarter. Sumitomo and Brookfield invested $295 million and $ 151 million respectively in MMRDA assets, reinforcing global investor confidence in Mumbai's infrastructure-led growth. Together, these top three deals signal a balanced mix of interest across retail, land, and urban development segments.
