Indian real estate draws $1.13 bn PE investment in H1, office segment captures 89 pc share

Mumbai, June 26 (IANS) Private equity (PE) investments in Indian real estate stood at $1.13 billion in H1 2026, led by robust demand for office assets, which accounted for nearly 89 per cent of total investments, a report said on Friday.

The office segment witnessed a 33 per cent increase in investments year-on-year, while NCR emerged as the largest investment destination with inflows of $411 million, data compiled by Knight Frank India showed.

“Over the past few years, investors have witnessed a sharp rise in global borrowing costs, reducing the yield advantage that emerging markets traditionally enjoyed. Consequently, capital allocation decisions are increasingly influenced by factors such as execution certainty, taxation, liquidity and realised returns,” said Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

India’s office market continues to demonstrate remarkable resilience, supported by sustained GCC expansion, strong occupier demand and an increasing stock of institutional-grade assets.

The report forecasted that India’s long-term growth story remains compelling, but attracting larger pools of global capital will increasingly depend on creating a competitive investment framework that complements strong market fundamentals.

NCR emerged as the leading destination for private equity investments in H1 2026, recording a remarkable 522 per cent YoY increase in inflows to $411.1 million, compared with $66 million in H1 2025.

Investment activity remained concentrated in a handful of established markets that offer strong occupier demand, quality asset pipelines and greater visibility of returns.

Pune followed with $355.9 million of investments, supported by selective residential transactions and its growing position as an office and manufacturing hub, while Chennai attracted $154.7 million, benefiting from strong industrial, logistics and commercial real estate fundamentals.

Bengaluru recorded $115.9 million of investments, underpinned by sustained GCC expansion and its position as India’s leading technology and office market.

—IANS

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