New Delhi: Private equity (PE) investment in Indian real estate totalled USD 1.3 billion (INR 129 billion) in Q3 2026, excluding USD 167 million (INR 16 billion) in asset acquisitions by REITs/InvITs during the quarter, according to the latest research by Savills India. Investment declined 33% quarter-on-quarter (QoQ), reflecting investor caution amid heightened geopolitical and macroeconomic uncertainties.
Despite the quarterly slowdown, cumulative private equity inflows for January–September 2026 reached USD 4.5 billion (INR 435 billion), marking a 16% increase over the corresponding period in 2025.
Private equity institutional investments, as defined in the report, include equity transactions executed through private routes, structured debt deals by AIFs and non-convertible debenture (NCD) issuances. They exclude plain debt deals executed through fund raises, qualified institutional placements (QIPs), public market transactions and platform formations.
Also Read: India’s Emerging Property Corridors: Can Infrastructure Drive the Next Wave of Real Estate Growth?
Hospitality Leads Real Estate PE Investment in Q3 2026
Hospitality attracted the largest share of private equity investment in Indian real estate during Q3 2026, accounting for 26% of total inflows. The segment benefited from rising consumption and sustained investor interest.
Industrial and logistics assets ranked second, securing 22% of investment after a brief period of subdued activity. Continued demand from e-commerce, manufacturing and supply-chain expansion supported the segment’s return to prominence.
Residential real estate accounted for 15% of total inflows. Office assets and data centres, which had led investment activity in recent quarters, received comparatively smaller shares during Q3 2026, at 14% and 8%, respectively.
Quarterly Private Equity Investment in Indian Real Estate
| Time period | PE investment |
|---|---|
| Q3 2026 | USD 1.3 billion |
| Q3 2025 | USD 1.5 billion |
Source: Savills India Research
Domestic Investors Support Investment Resilience
Commenting on investment trends, Sumeet Bhatia, Managing Director, Research & Consulting, Savills India, said, “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,”
Key Private Equity Transactions in India
The largest transactions listed in Savills India Research for the period included investments by CPPIB, Logicap and Fidelity Investments across hospitality, warehousing and residential development.
| Investor | Investee/Asset | Investment quantum (USD million) |
|---|---|---|
| CPPIB | Prestige Hospitality Ventures Ltd. | 314 |
| Logicap | Warehouses in Chennai, Kolkata and Bhiwandi (near Mumbai) | 208 |
| Fidelity Investments | Lodha Developers | 194 |
Source: Savills India Research
The Q3 2026 figures point to a shift in the distribution of real estate investment, with hospitality and industrial and logistics assets attracting larger shares while office and data centre investments eased. Savills India expects investors to remain selective, prioritising segments with stronger growth prospects as they navigate market volatility.
Also Read: Smart Buildings and Sustainability Trends Are Reshaping the Future of Real Estate
