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Private equity (PE) inflows into Indian real estate stood at USD 1.3 billion (INR 129 billion) in Q3 2026, excluding USD 167 million (INR 16 billion) of asset acquisitions by REITs/InvITs during the quarter. PE investment declined 33% QoQ, as investors remained cautious amid heightened geopolitical and macroeconomic uncertainties. YTD (January–September 2026) PE inflows reached USD 4.5 billion (INR 435 billion), 16% higher than the corresponding period in 2025 according to the latest findings by Savills India, a global real estate consulting firm.

Note: Private equity institutional investments include equity deals executed through private route, structured debt deals by AIFs and NCD issuances; and exclude plain debt deals executed via fund raises, QIPs, public market deals and platform formations.

In Q3 2026, the hospitality segment emerged as the leading recipient of PE inflows, accounting for 26% of total investments, supported by rising consumption and continued investor interest in the segment. Industrial & logistics made a strong comeback after a brief investment lull, securing the second-largest share at 22%, driven by sustained demand from e-commerce, manufacturing and supply-chain expansion. The residential segment followed with a 15% share of total inflows. Meanwhile, office and data centre investments, which had led PE activity in recent quarters, took a back seat in Q3, accounting for 14% and 8%, respectively.

“Private equity investment in Indian real estate has remained resilient in 2026, with YTD inflows reaching USD 4.5 billion, despite a more cautious global investment environment. The growing participation of domestic investors is particularly encouraging and reflects the increasing depth of India’s real estate market. Strong investor interest in segments such as hospitality and industrial & logistics highlights the broadening opportunity set. Looking ahead, we expect investors to remain selective, with capital increasingly directed towards segments offering healthy growth prospects and markets that are well positioned to attract capital as investors look beyond volatility towards India’s long-term growth story,” said Sumeet Bhatia, Managing Director, Research & Consulting, Savills India.

Source: RCA and Savills India Research

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