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Private equity (PE) inflows into Indian real estate stood at $1.3 billion in Q3 2026, down 33 per cent quarter-on-quarter, as investors remained cautious amid geopolitical and macroeconomic uncertainties, a report said on Friday. 

A report by Savills India, excluding $167 million of asset acquisitions by REITs or InvITs during the quarter, YTD (January–September 2026) PE inflows reached $4.5 billion, 16 per cent higher than the corresponding period in 2025.

In Q3 2026, the hospitality segment emerged as the leading recipient of PE inflows, accounting for 26 per cent of total investments, supported by rising consumption and continued investor interest, it added.

Industrial and logistics made a strong comeback after a brief lull, securing the second-largest share at 22 per cent, driven by sustained demand from e-commerce, manufacturing and supply-chain expansion.

"Private equity investment in Indian real estate has remained resilient in 2026, with YTD inflows reaching $4.5 billion, despite a more cautious global investment environment. The growing participation of domestic investors is particularly encouraging and reflects the increasing depth of India's real estate market," said Sumeet Bhatia, Managing Director, Research & Consulting, Savills India.

Moreover, the residential segment followed with a 15 per cent share.

Office and data centre investments which had led PE activity in recent quarters took a back seat in Q3, accounting for 14 per cent and 8 per cent, respectively, the report said.

Separately, a report has showed that institutional deal activity in India broadened in the third quarter of 2026 with 696 transactions worth $36.9 billion recorded across mergers and acquisitions, private equity and public markets

Excluding initial public offerings and qualified institutional placements, 608 M&A and PE transactions were recorded worth $23.1 billion with volumes rising 8 per cent quarter?on?quarter even as values declined 36 per cent, the report from Grant Thornton Bharat said.