A global real estate consulting firm has highlighted that the residential assets led the market, accounting for approximately 51 per cent of the total private equity (PE) investment volume.

The majority of this capital was directed toward Bengaluru, Mumbai, Pune, and Delhi-NCR, underlining the continued momentum and demand in key Tier/cities.

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According to the latest data released by Savills India, a global real estate consulting firm, the private equity investment inflows into the Indian real estate sector grew 35 per cent year-on-year to Rs 64 billion (USD 748 million) in the first quarter of fiscal 2025.

Further, the commercial office segment emerged as the second-highest contributor, securing a 32 per cent share of total investments. This segment saw inflows exclusively from foreign investors, with funds primarily directed toward development assets in Bengaluru and land in Mumbai.

Speaking on the development, Arvind Nandan, Managing Director, Research & Consulting, Savills India, said, “While 2024 had shown some improvement in PE inflows, Q1 of 2025 has demonstrated a clear surge with 35 per cent YOY growth. Notably, it is also a 230 per cent sequential rise over the previous quarter.”

“The residential segment, attracting 51 per cent of the quarterly pie, underscores strong confidence in the future of this segment of the market. Additionally, the APAC regional inflow accounted for 53 per cent of foreign funding in this period, a prominent indication of Asian investors’ strong interest,” he said.

It is to be highlighted that the investable universe in the Indian real estate sector is expanding with the evolution of Real Estate Investment Trusts (REITs).