Mumbai, June 26
Private equity (PE) investment in India’s office real estate sector in the first half this year reflected measured optimism, driven by asset quality, prime locations and long-term tenancy visibility, according to a report on Thursday.
PE investments into Indian real estate sector stood at $1.7 billion, spread across 12 deals in the April-June period.
While overall capital deployment across real estate declined due to global macroeconomic pressures, the office segment stood out with $706 million invested across three transactions in H1 2025, marking a 22 per cent increase from $579 million in H1 2024, according to the report by Knight Frank India.
Rather than broad-based investment, this growth was fuelled by strategic allocations into high-quality, Grade-A assets in core markets.
Investors showed a preference for larger, stabilised or near-stabilised office spaces with strong cash flow potential, often through joint ventures or REIT-aligned platforms.
A notable trend in H1 2025 was the near-equal split between investments in ready and under-construction assets — about 50 per cent each, said the report.
“India’s commercial real estate market continues to show strong fundamentals, driven by the return to office, rising absorption levels, and strengthening rental values,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.