India’s real estate sector saw a strong finish to FY25, with private equity (PE) investments rising 35% year-on-year to $748 million (₹64 billion) in the January–March 2025 quarter, according to the latest data from Savills India. The report points to a notable rebound in investor sentiment, especially in the residential and commercial office segments.

Residential assets dominated the quarter, pulling in about 51% of the total PE investment. This signals a renewed vote of confidence in the housing market, which continues to gain traction in key metro areas. “The residential segment, attracting 51 per cent of the quarterly pie, underscores strong confidence in the future of this segment of the market,” said Arvind Nandan, Managing Director of Research and Consulting at Savills India.

The commercial office space was the second-largest contributor, securing a 32% share of total investments. Interestingly, this segment saw exclusive participation from foreign investors, who mainly targeted development assets in Bengaluru and land parcels in Mumbai — two cities that remain hotbeds for commercial growth.

The investment activity was concentrated in top-tier cities like Bengaluru, Mumbai, Pune, and Delhi-NCR. These metros continue to attract consistent capital, reflecting their resilient demand and strong infrastructure fundamentals. Notably, there was a staggering 230% sequential rise in PE inflows over the previous quarter, pointing to a sharp recovery and investor optimism.

Foreign investments played a significant role in this surge, with the Asia-Pacific region accounting for over half (53%) of international funding. “It is a prominent indication of Asian investors’ strong interest,” Nandan added, emphasizing the region’s growing appeal to global capital.

Savills, the global real estate consulting firm behind the report, operates in more than 700 offices worldwide and has a strong presence in India through its full-service hubs in major cities. The company supports occupiers, investors, and developers across asset classes — including commercial, industrial, logistics, data centres, and residential — offering end-to-end services such as leasing, advisory, valuations, and project management.

With the current momentum and increasing foreign interest, the outlook for Indian real estate remains bullish in 2025, particularly for the residential and commercial office segments. The latest numbers suggest that investor appetite is recovering and shifting gears for accelerated growth.