In the first quarter of 2026, private equity investments in India's real estate sector surged to $637 million, marking a 2.1-fold increase from $300 million in the same period last year, according to data from Knight Frank India. The majority of this growth was driven by office properties, which accounted for $529 million or 83% of total investments across four transactions. Three of these deals were structured as equity investments, indicating a growing confidence in pricing and leasing fundamentals in key markets.

Shishir Baijal, International Partner and CMD of Knight Frank India, noted that the doubling of PE investment volumes compared to Q1 2025 reflects a clear investor preference for stabilised, income-generating assets. The National Capital Region (NCR) was the leading area for investment, attracting $411 million, while Pune followed with $203 million. Domestic capital played a significant role, contributing $510 million or 80% of total investments, as foreign capital remained cautious due to global uncertainties.

As the year progresses, industry experts anticipate a broader recovery in investment activity, particularly in office assets, which are expected to remain central to institutional portfolios due to their predictable cash flows and lower execution risks.