India real estate sees surge in industrial and data centre investments

India's real estate sector experienced significant growth in the first nine months of 2026, driven by industrial, warehousing, and digital infrastructure demands. Grade A industrial and warehousing leasing reached 33.3 million sq ft, marking a 26% year-on-year increase. Delhi-NCR and Chennai emerged as primary growth drivers, accounting for nearly half of the total demand, while Pune and Bengaluru saw annual space uptake rises of 60-70%.

In the private equity sector, India attracted USD 6.1 billion across 55 deals during the same period. Data centres have become the leading investment destination, securing USD 2.5 billion—approximately 40% of total private equity inflows. This segment has overtaken office real estate, which received USD 1.7 billion, as businesses increasingly invest in AI, cloud computing, and digital services.

Domestic capital participation is also rising, with domestic private equity investments reaching USD 2.6 billion in the first nine months of 2026, up from USD 400 million in 2020. If current trends persist, 2026 could represent the strongest year for real estate private equity investments since 2007.