Office leads private equity inflows in 2025; overall real estate investment at USD 3.5 billion: Knight Frank India

Key Highlights

• Residential real estate emerged as the second-largest recipient of PE investments, accounting for 17 per cent of total inflows.
• However, Knight Frank observed a shift in the nature of capital deployment, with investors increasingly favouring "credit-led instruments over pure equity exposure." Warehousing was the third-largest segment, drawing 15 per cent of PE investments in 2025, supported by robust occupier demand driven by e-commerce expansion, supply-chain formalisation and manufacturing growth.
• In contrast, retail real estate saw limited activity, accounting for just 11 per cent of investments, with capital deployed only into assets meeting "strict criteria on scale, operating performance, and exit visibility" Commenting on the outlook, Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, "Knight Frank's investment forecasting model points to a more supportive environment over the medium term.
• Based on assumptions around government capital expenditure, currency movement, inflation, interest rates and incremental office supply, private equity investments in Indian real estate are projected to rise by 28 per cent year on year to approximately USD 4.4 billion in 2026.
• This recovery is expected to be measured, driven by selective growth rather than a broad-based return of risk capital." This article was generated from an automated news agency feed without modifications to text.