In Q3 2026, the hospitality segment attracted the largest share of PE investment, accounting for 26% of total inflows. Rising consumption and continued investor interest supported investment activity in the segment. Industrial and logistics followed with a 22% share, recovering after a brief slowdown as demand from e-commerce, manufacturing and supply-chain expansion continued. Residential real estate accounted for 15% of total inflows.
Office and data centre investments, which had led PE activity in recent quarters, recorded lower shares during the quarter, accounting for 14% and 8% of total inflows, respectively.
Despite the quarterly decline, investment activity remained resilient over the first nine months of 2026. Savills India attributed this performance partly to growing participation from domestic investors and expanding investment opportunities across real estate segments.
“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.
Among the major transactions during the quarter, Canada Pension Plan Investment Board (CPPIB) invested USD 314 million in Prestige Hospitality Ventures Ltd. Logicap invested USD 208 million in warehouses across Chennai, Kolkata and Bhiwandi near Mumbai, while Fidelity Investments invested USD 194 million in Lodha Developers.
Savills India’s analysis covers institutional private equity investments, including equity deals executed through private routes, structured debt deals by alternative investment funds (AIFs) and non-convertible debenture issuances. It excludes plain debt deals executed through fundraises, qualified institutional placements, public market transactions and platform formations.
The findings indicate that while global uncertainties are influencing investment decisions, India’s real estate market continues to attract institutional capital. Investors are increasingly focusing on segments with stronger growth prospects and markets positioned to deliver long-term returns.
