Mumbai, 26 June (IANS). In the first half of this year, private equity (PE) investment in India’s office real estate sector showed optimism.
The PE investment in the Indian Real Estate Sector during the April-June period stood at $ 1.7 billion in 12 deals.
According to the report by Night Frank India, the total capital investment in real estate declined due to global comprehensive economic pressures, but the office segment invested $ 706 million in three transactions in the first half of 2025, indicating an increase of $ 579 million to 22 percent in the first half of 2024.
Instead of broad-based investment, this growth was observed due to strategic allocation in high-quality, grade-A assets in the main markets.
Investors prefer large, stable or almost stable office space with strong cash flow capacity, often through joint enterprises or rit-handed platforms.
The report stated that in the first half of 2025, almost equal division between the prepared and investment in assets under construction, about 50 percent each, was a noticeable trend.
Shishir Baijal, president and managing director of Knight Frank India, said, “India’s commercial real estate market continues to show strong basic things, which is operated by the return, growing absorption level and strong fare prices.”
Similarly, the residential sector has seen an increase on an annual basis, and retail consumption remains stable, which has the support of overall economic speed.
He said, “These factors have encouraged investors to adopt a long-term approach on the Indian market. As the comprehensive economic conditions in the West seem to be easy, we hope that the global capital flow will return to the Indian real estate, which will support the country’s continuous growth and regulatory clarity.”
According to the report, a major trend was a return to credit instruments in the first half of 2025. 60 percent of the $ 500 million invested came through debt structures, compared to 40 percent last year.
Bengaluru and Pune Capital dominated the absorption, which was about $ 350 million of total flow.
-IANS
SKT/
