India, June 26 -- Private equity investments in Indian real estate fell 41% year-on-year in H1 2025 to $1.7 billion across 12 deals, as the global economic environment marked by persistent inflation and tighter monetary conditions prompted many Western funds to adopt a cautious, wait-and-watch approach, leading to subdued activity in the sector, as per an assessment by Knight Frank India.

Despite the overall slowdown, the office segment remained the top performer, attracting $706 million in H1 2025, a 22% YoY increase, indicating a shift in global capital flows due elevated interest rates, tightening liquidity, and heightened investor focus on post-tax visibility, currency-adjusted returns and execution over scale.

Domestic capital has ...