India’s real estate sector attracted $3.2 billion in private equity investments during H1 2026, a 33% year-on-year increase, according to Savills India. Office assets remained the top investment segment, while data centres saw rapid growth. Strong domestic participation and diversified investments signal continued confidence in India’s commercial real estate market.
India’s real estate sector continued to attract significant investor interest during the first half of 2026, with private equity (PE) investments rising 33% year-on-year to $3.2 billion, according to a report by Savills India. The growth reflects sustained confidence in the country’s commercial real estate market despite global economic uncertainties. During the April–June quarter alone, PE inflows reached $2 billion, marking a 25% increase over the same period last year.
The report highlights that investors are increasingly backing income-generating commercial assets and emerging real estate segments. While office properties continued to receive the largest share of investments during the first half of the year, data centres recorded exceptional momentum, reflecting the growing demand for digital infrastructure across India.
Office Assets Continue to Lead
Office real estate remained the biggest investment destination during H1 2026, accounting for 34% of total private equity inflows. The continued preference for premium office assets reflects healthy occupier demand from Global Capability Centres (GCCs), technology firms, and enterprises expanding their operations across India’s major business hubs.
However, the investment landscape shifted during the second quarter, with data centres attracting 38% of total investment, surpassing office assets at 30%. Residential projects accounted for 16% of investment inflows, while hospitality accounted for 8%. Emerging sectors such as student housing and co-living also continued to gain attention, accounting for 3% of total investments, highlighting the growing diversification of India’s real estate market.
Domestic Investors Drive Growth
Domestic investors played a leading role in the investment cycle, contributing 51% of total PE inflows during H1 2026. Most of this capital was directed toward office assets, which accounted for 68% of domestic investments, particularly in Tier-I cities where demand for Grade A commercial developments remains strong.
Foreign investors accounted for the remaining 49% of total investment, with 69% of overseas capital coming from the United States and Canada. Much of this international capital was channelled into data centres and hospitality assets, reflecting global investors’ increasing interest in India’s expanding digital infrastructure and alternative real estate segments.
Commenting on the market outlook, Sumeet Bhatia, Managing Director, Capital Market Services, Savills India, said, “The investment trend reflected growing confidence in India’s real estate market.” He further noted that “office assets continued to remain a core allocation for investors, while the sharp rise in data centre investments highlighted increasing interest in digital infrastructure.”
Positive Outlook for Commercial Real Estate
Several high-value transactions underscored the strength of investor sentiment during the first half of the year. Among the largest deals, Canada Pension Plan Investment Board (CPPIB) invested $742 million in CtrlS Datacenters, while 360 One Asset invested $156 million in CapitaLand, and ICICI Prudential Alternatives committed $154 million to RMZ Group.
Savills India expects investment activity to remain strong in the coming quarters as investors continue expanding their long-term exposure to India’s commercial real estate sector. With office assets maintaining their leadership position and alternative sectors gaining traction, the outlook remains positive for developers, institutional investors, and the broader flexible workspace ecosystem.
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