<p>Bengaluru: Contrary to reports pointing to a continued private equity (PE) investment downturn in Indian real estate, realty consulting firm Savills India saw a 35% year-on-year (YoY) rise in inflows to $748 million in the January-March quarter (Q1) of 2025.</p>.<p>This is against $554 million in the same period in 2024, as per the report released on Thursday.</p>.<p>“The APAC regional inflow accounted for 53% of foreign funding in this period, a prominent indication of Asian investors’ strong interest,” highlighted Arvind Nandan, Managing Director, Research and Consulting, Savills India.</p>.<p>Residential assets led the market, accounting for approximately 51% of the total investment volume at $380 million. The attractiveness of this segment can be partly attributed to the significant growth it has witnessed recently, which is likely to continue, noted the report. Investment activity was primarily concentrated in land and development assets in Bengaluru, Mumbai, Pune and the NCR.</p>.Trump's tariff pause leaves CEOs puzzled about what happens in 90 days.<p>The office segment emerged as the second-highest contributor, securing a 32% 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.</p>.<p>“While 2024 had shown some improvement in PE inflows, Q1 of 2025 has demonstrated a clear surge with 35% YOY growth. Notably, it is also a 230% sequential rise over the previous quarter,” observed Nandan.</p>.<p>This is up from $3.4 billion in both 2021 and 2022 each, which had marked a fall from a booming $6.6 billion in 2020 in institutional investment in Indian real estate. Since then, slight increases have been following, Nandan explained to <span class="italic"><em>DH</em></span>. 2023 was up to $3.9 billion, and 2024 continued to see an increase at $4.3 billion.</p>.<p>Key investors were CapitaLand India Trust (with a quantum of $171 million), HDFC Capital ($151 million), and Blackstone ($135 million).</p>.<p>With the evolution of real estate investment trusts (REITs), the “investible” segments in the realty space are expanding further, as per the report.</p>
<p>Bengaluru: Contrary to reports pointing to a continued private equity (PE) investment downturn in Indian real estate, realty consulting firm Savills India saw a 35% year-on-year (YoY) rise in inflows to $748 million in the January-March quarter (Q1) of 2025.</p>.<p>This is against $554 million in the same period in 2024, as per the report released on Thursday.</p>.<p>“The APAC regional inflow accounted for 53% of foreign funding in this period, a prominent indication of Asian investors’ strong interest,” highlighted Arvind Nandan, Managing Director, Research and Consulting, Savills India.</p>.<p>Residential assets led the market, accounting for approximately 51% of the total investment volume at $380 million. The attractiveness of this segment can be partly attributed to the significant growth it has witnessed recently, which is likely to continue, noted the report. Investment activity was primarily concentrated in land and development assets in Bengaluru, Mumbai, Pune and the NCR.</p>.Trump's tariff pause leaves CEOs puzzled about what happens in 90 days.<p>The office segment emerged as the second-highest contributor, securing a 32% 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.</p>.<p>“While 2024 had shown some improvement in PE inflows, Q1 of 2025 has demonstrated a clear surge with 35% YOY growth. Notably, it is also a 230% sequential rise over the previous quarter,” observed Nandan.</p>.<p>This is up from $3.4 billion in both 2021 and 2022 each, which had marked a fall from a booming $6.6 billion in 2020 in institutional investment in Indian real estate. Since then, slight increases have been following, Nandan explained to <span class="italic"><em>DH</em></span>. 2023 was up to $3.9 billion, and 2024 continued to see an increase at $4.3 billion.</p>.<p>Key investors were CapitaLand India Trust (with a quantum of $171 million), HDFC Capital ($151 million), and Blackstone ($135 million).</p>.<p>With the evolution of real estate investment trusts (REITs), the “investible” segments in the realty space are expanding further, as per the report.</p>
