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Private Equity in Indian Real Estate Falls 29% in 2025, With Offices Taking the Lead

Knight Frank forecasts a selective recovery in 2026 driven by income-focused deals.

Overview

  • Knight Frank estimates 2025 private equity inflows at about $3.46–$3.5 billion, down from $4.9 billion in 2024.
  • Office assets attracted roughly $2.0 billion, or 58% of total capital, as investors favored stable, income-generating properties.
  • Housing investment fell to about $576 million from $1,177 million a year earlier, and warehousing dropped to about $510 million from $1,877 million.
  • Retail captured roughly 11% of inflows after a single large transaction, with broader deal activity remaining subdued.
  • The consultancy links the slowdown to a recalibration of capital costs, exit visibility and valuations, alongside a shift toward structured and credit-led investments.