Private equity investments in Indian real estate saw a 29% year-on-year decline in 2025, totaling $3.5 billion, as global factors influenced risk and return assessments. Office assets remained the primary focus, attracting 58% of investments. Despite a cautious investor stance due to higher capital costs and valuation mismatches, a rebound is anticipated for 2026, with projections indicating a 28% increase to approximately $4.4 billion, driven by selective strategies rather than broad risk-taking.