Private equity (PE) inflows into Indian real estate fell sharply by 41% year-on-year in H1 2025 to $1.7 billion across 12 deals.

As global economic uncertainties and tighter monetary policies made Western investors cautious, according to Knight Frank India. Despite the slowdown, the office segment bucked the trend, attracting $706 million—a 22% YoY rise—highlighting continued interest in stable, income-generating assets. Notably, domestic capital played a stronger role, with Indian institutions contributing 25% of total inflows, up from 11% during 2011–2020, driven by improved regulatory frameworks and maturing financial capabilities. Mumbai led the regional inflow charts with $468 million, while southern cities also saw healthy interest. The sharp drop in the number of deals, from 24 in H1 2024 to 12 in H1 2025, reflects growing investor focus on selectivity, post-tax returns, and execution quality over scale. The trend signals a recalibration in capital deployment amid evolving global financial conditions.