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Private Equity Investment in India's Commercial Real Estate

By PropertyGeld Editorial Team

Published on PropertyGeld: 3 Oct 2026

Private Equity Investment in India's Commercial Real Estate

Private Equity Funds Increase Focus on Commercial Real Estate

India's commercial real estate sector attracted increasing attention from private equity (PE) investors during 2018. Large global investment firms were becoming more active in office properties, logistics assets and other commercial developments.

The expansion of businesses, including multinational and domestic companies, was creating additional demand for commercial space. This growing demand was one of the factors supporting investor interest in the sector.

Factors Supporting Commercial Real Estate Investment

Several policy and economic developments were helping improve the investment environment for commercial property.

These included:

Infrastructure status for the logistics sector
Greater foreign investment opportunities in e-commerce
Implementation of GST
Expansion of businesses and office requirements
Growing demand for quality commercial projects

Together, these developments were contributing to greater institutional interest in Indian commercial real estate.

Major PE Transactions

During 2018, several significant transactions took place in India's commercial property market.

One notable transaction involved Blackstone acquiring a 50% stake in prime commercial assets in Mumbai from Indiabulls Real Estate for around ₹4,750 crore.

Another investment involved an office tower in Gurugram, acquired by the Indiabulls Dual Advantage Commercial Assets Fund from Hines India.

There were also transactions involving fully leased commercial properties, demonstrating investor interest in income-generating assets.

Office Real Estate Attracted Major Funds

Office development and investment became an important area for institutional investors.

Godrej Fund Management announced funds focused on office development and investment. The combined funds had the potential to invest or develop office assets worth more than US$1 billion, according to the 2018 report.

The interest reflected the growing importance of professionally managed office assets in India's commercial property market.

Warehousing and Logistics Gain Attention

Industrial warehousing was another segment attracting private equity investment.

A logistics park in Chennai received an investment of approximately ₹350 crore through a partnership involving Firstspace Realty and Ascendas-Singbridge.

The limited availability of quality commercial projects and expanding economic activity were among the factors encouraging investors to explore logistics and warehousing opportunities.

Cities Attracting PE Investment

Although Mumbai remained a major commercial investment market, private equity activity was spreading to several other cities.

The 2018 article specifically mentioned:

Mumbai
Gurugram
Noida
Indore
Mohali
Surat
Visakhapatnam
Coimbatore
Ahmedabad
Chennai

This indicated that institutional investment was not limited to India's largest metropolitan markets.

Why Commercial Property Was Attracting Investors

Commercial real estate offered investors exposure to established income-generating assets as well as future development opportunities.

Investing at an early stage could provide access to a developer's upcoming project pipeline, while investments in leased properties could provide exposure to rental income.

The increasing presence of institutional investors also reflected the gradual professionalisation of India's commercial real estate sector.

Growing Interest Beyond Major Metros

An important trend highlighted in the article was the growing interest in Tier-2 and Tier-3 cities.

Cities such as Indore, Mohali, Surat, Visakhapatnam, Coimbatore and Ahmedabad were attracting investment alongside established markets such as Mumbai, Chennai and Gurugram.

This expansion was linked to increasing economic activity and the development of commercial real estate in emerging markets.

Conclusion

India's commercial real estate sector was attracting increasing private equity interest during 2018. Office properties, logistics parks and other commercial assets were among the segments receiving institutional capital.

While Mumbai remained a major investment destination, PE activity was also expanding into Gurugram, Noida, Chennai and several emerging Tier-2 and Tier-3 cities.

The article's data is historical and reflects the Indian commercial real estate environment of 2018, rather than the current market.

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